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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
TEI Question #16. Does CCRA consult with Finance prior to adopting its interpretations? What is the role of the Department of Justice?
Position:
The CCRA consults with the Department of Finance when the intent of the legislation is not apparent. The CCRA consults with the Department of Justice for advice whether its proposed positions are sustainable and the better view of the law.
Reasons:
The author of the question raised the issue with regard to the Crown's position in Royal Trust 2001 DTC 52, which was viewed as contrary to tax policy principles. The response confirms that CCRA officials did consult with the Department of Finance to ascertain the intent of the legislation before adopting its position in that case.
December 4, 2001
16. Consideration given to tax policy in interpreting legislation
Q. In interpreting tax legislation, does the CCRA take into account tax policy and the intent of the legislation? In this regard, does the CCRA consult with the Department of Finance prior to adopting an interpretation?
A. Where the intent of a legislative provision is not apparent from the legislation itself, or from supplementary material published by the Department of Finance, the CCRA will consult with that Department either formally (i.e. by writing to the Tax Policy Branch of that Department) or informally (by speaking with officials of that Branch).
The author of this particular question raised the issue with regard to Royal Trust v. The Queen, 2001 DTC 52 which dealt with an assessment by the CCRA to include an amount in the capital of a financial institution, for purposes of Part I.3, in respect of tangible property that was the subject of a financial lease. We can advise that with respect to that type of arrangement the CCRA did consult with officials of the Department of Finance, who confirmed that the CCRA's proposed application of Part I.3 to tangible property subject to financial lease was consistent with legislative intent.
Q. What is the role of the Department of Justice in identifying the policy intent of tax legislation and more generally, in advising the Minister of National Revenue?
A. In advising the Minister of National Revenue, the Department of Justice issues opinions whether proposed positions are sustainable and the better view of the law. Justice officials do not advise on tax policy, unless it is their view that policy intent is manifest from the words and context of the provision at issue. The CCRA officials who request an opinion would generally advise counsel what the relevant policy objective is, where the legislation at issue is not clear and unambiguous.
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