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: Should Quebec Sales Tax Input Tax Refunds (QST-ITR) be considered income for the purposes of ITA 12(1)(x)?
Position: Yes when received
Reasons: ITA 12(1)(x)
XXXXXXXXXX 2001-008329
Shaun Harkin, CMA
July 26, 2001
Dear XXXXXXXXXX:
Re: Technical Interpretation Request: Quebec Sales Tax - Paragraph 12(1)(x)
We are replying to your facsimile of May 7, 2001 concerning the application of paragraph 12(1)(x) of the Income Tax Act (the "Act") to the Quebec Sales Tax (QST) Input Tax Refund (ITR). In particular, you enquire as to whether the ITR is to be included into income when received pursuant to subparagraph 12(1)(x)(iv) of the Act.
Pursuant to paragraph 12(1)(x) of the Act, a taxpayer is required to include in computing his income from a business or property amounts of assistance that can reasonably be considered to have been received from a government as, inter alia, a refund, to the extent that they are not described by subparagraphs 12(1)(x)(v) to (viii) of the Act. It is our opinion that the QST-ITR is government assistance subject to paragraph 12(1)(x) of the Act.
The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this disclaimer in all instances in which we provide an opinion.
We trust the above comments are of assistance.
Yours truly,
Steve Tevlin
for Director
Partnerships Section
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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