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 corporation XXXXXXXXXX be an agent of the Crown for purposes of receiving gifts and issuing receipts? The enabling statute indicates the corporation is an agent of the government for all purposes.
Position:
General comments only. A corporation will be viewed as an agent if it is acting within its authority.
Reasons: See decision of Federal Court of Appeal in Nova Scotia Power Inc.
XXXXXXXXXX 2003-000395
R. Maley
February 27, 2003
Dear XXXXXXXXXX:
Re: Agent of the Crown
This is in response to your request that we XXXXXXXXXX. You are seeking confirmation that gifts made to the corporation will be treated as gifts to the Crown for the purposes of the Income Tax Act.
Written confirmation of the tax implications inherent in particular transactions are 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. However, we can provide a few general comments.
In previous correspondence on this matter, we referred you to paragraph 7 of IT-297R2 which states "Gifts to Her Majesty in right of Canada and Her Majesty in right of the provinces include gifts to an agent of the Crown. Whether a particular entity is an agent of the Crown in right of Canada or a province depends on whether the law creating the entity (a corporation, commission, gallery, etc.) expressly makes it an agent of the Crown or the entity is an agent of the Crown at common law."
Where the enacting legislation specifically provides that a corporation wholly owned by a province is, for all purposes, an agent of the Crown in right of the province, our view is that the corporation would be viewed as an agent of the Crown provided it is acting within its authority. Reference in this respect may be made to the comments of the Federal Court of Appeal in Nova Scotia Power Inc. [2003] FTR 49545:
Where an act creates (or continues) a corporation, makes it an agent of the Crown, sets out its objects and confers on it the powers necessary to enable it to meet its objectives, it is not unreasonable to conclude that the corporation acts as a Crown agent in giving effect to its objects.
We trust this will be of assistance.
Yours truly,
F. Lee Workman
Manager
Financial Institutions Section
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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