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.
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