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:
Interest deductibility on borrowed money used for the purpose of earning income
Position TAKEN: Position released at Canadian Tax Foundation in October 2002
Reasons FOR POSITION TAKEN: N/A
CALU Questions for Tax Policy Roundtable
Question 2
Update on CCRA's Review of Interest Deductibility Issues
Can the CCRA provide an update on the current status of the review and proposed new interpretation bulletin dealing with interest deductibility?
Agency's Response:
As you know, on October 1, 2002, we presented at the Canadian Tax Foundation an update on our preliminary review of our existing interpretative and administrative positions on interest deductibility. As part of this process, a consultation period followed during which we received comments regarding the proposed positions. In the near future, we anticipate that a new interpretation bulletin on interest deductibility will be issued setting out CCRA's official interpretations on interest deductibility issues. In addition, we will continue to consult with the Department of Finance.
On February 18, 2003, as part of the presentation of the Federal budget, the Department of Finance announced that legislative amendments regarding interest will be considered.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2003
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2003
