Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Is the amount received in 1999 under the Atlantic Ground Fish License Retirement subject to income tax?
Position:
File referred to the St. John's Tax Centre.
Reasons:
Seems to be a request for information on a completed transaction or a request for an adjustment.
September 15, 2000
Ms Lorna Beaton HEADQUARTERS
Assistant Director Jacques E. Grisé
Enquiries and Adjustments Division 957-2059
St. John's Tax Centre
2000-003936
XXXXXXXXXX
Enclosed for your attention is a letter of July 13, 2000 we received from XXXXXXXXXX which seems to be a request for information on a completed transaction or an adjustment to his 1999 income tax return.
As indicated in the Agency's Fishing Income guide, a fishing licence for an unlimited period acquired for the purpose of gaining or producing income from a business is considered an eligible capital expenditure. Any proceeds from the disposition of such a licence is treated as proceeds from the disposition of eligible capital property. Where a fishing licence for an unlimited period is not acquired for the purpose of gaining or producing income from a business or in a business of buying and selling licenses, any proceeds from its disposition should be treated as proceeds from the disposition of a capital property from which a capital gain or loss may result.
We have attached documents from our data bank on licence buy-backs which may be helpful in responding to XXXXXXXXXX.
Please do not hesitate to contact us should you require assistance in resolving XXXXXXXXXX request.
John Oulton
Manager
Business, Property and Employment
Income Section III
Business and Publications Division
Income Tax Rulings Directorate
Enclosures
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