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: Does the change in terminology from deferred income taxes to future income assets and liabilities have implications for purposes of Part I.3 tax?
Position: No.
Reasons: The change in terminology does not alter the legal nature of these amounts for purposes of Part I.3 tax.
TEI Conference
December 6, 2000
Question 30
Deferred income taxes and Part I.3 Tax
According to Section 3465 of the CICA Handbook, deferred income taxes are now described as future income tax assets and liabilities and presented accordingly in financial statements. Does CCRA agree that references in the Act to deferred tax debits and a provision in respect of deferred taxes correspond with the revised terminology adopted by the CICA or that an amendment to the Act is required?
Agency's Position
It is our view that the terminology used in Part I.3 is based on legal principles. It is therefore the legal character of amounts that determines their Part I.3 tax treatment although we recognize that accounting terminology must be given consideration in this regard. Even though a different descriptive accounting terminology is being used in the CICA Handbook the concept of deferred income taxes has nevertheless been maintained. Accordingly, we are of the opinion that the change in terminology from deferred income taxes to future income assets and liabilities in the CICA Handbook does not alter the legal nature of these amounts for purposes of Part I.3 tax.
Author: Michele Trotier
Division: Income Tax Rulings Directorate
Phone Number: 957-3494
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