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:
Will a non-profit trust qualify under paragraph 149(1)(l) of the Act?
Position: Question of fact.
Reasons:
Insufficient information. File referred to charities to determine if the trust is a charity.
XXXXXXXXXX 2002-014366
M. P. Sarazin, CA
(613) 957-2089
July 26, 2002
Dear XXXXXXXXXX:
Re: Non-Profit Trust
This is in reply to your facsimile of May 31, 2002, requesting our views as to whether or not a non-profit trust would be exempt from taxes under paragraph 149(1)(l) of the Income Tax Act (the "Act").
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 70-6R5, dated May 17, 2002. Consequently, we can only provide the following general comments.
The Canada Customs and Revenue Agency's general views regarding Non-Profit Organizations are found in Interpretation Bulletin IT-496R, "Non-Profit Organizations". This publication is available on the Internet at the following site - http://www.ccra-adrc.gc.ca/formspubs/menu-e.html.
The first question that must be answered in making this determination is whether or not the non-profit trust is a charity for purposes of the Act. In order to make this determination, a copy of your facsimile has been forwarded to the Charities Division for its consideration. A discussion of this requirement is found in paragraph 4 of IT-496R.
We trust these comments will be of assistance.
Yours truly,
Mickey Sarazin, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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