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: The prevalence of the deduction of fines and penalties.
Position: Referred to the Audit Dirctorate.
Reasons: Audit Directorate are the only ones who will have that sort of information.
XXXXXXXXXX J. Gibbons, CGA
2001-008187
May 4, 2001
Dear XXXXXXXXXX:
This is in reply to your enquiry dated April 18, 2001. We are unaware of any proposed legislative amendments to the Income Tax Act on the question of the deductibility of fines and penalties. Also, we have had no experience in the disallowance of such expenses in “egregious” circumstances.
We have referred your letter to the Audit Directorate on your question about the prevalence of the deduction for fines and penalties, as we do not carry out such functions.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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