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:
Tax planning - whether it is beneficial to purchase errors and omissions insurance.
Position:
No comments provided.
Reasons:
Tax planning is outside the purview of opinions given by the Directorate.
XXXXXXXXXX 2001-011618
Randy Hewlett, B. Comm.
January 18, 2002
Dear XXXXXXXXXX:
Re: Tax Planning - Errors and Omissions Insurance
We are writing in response to your letter dated December 24, 2001, wherein you requested our opinion on whether it would be beneficial from a tax perspective for you to purchase errors and omissions insurance for your business.
Unfortunately, we are unable to comment on your inquiry since you have not asked us for an interpretation on how a specific provision of the Income Tax Act may apply. Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R4, Advance Income Tax Rulings, dated January 29, 2001. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office.
We trust our comments will be of assistance to you.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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