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.
Principal Issues: Whether Income Tax Rulings provides rulings on tax shelters
Position: In accordance with our position in IC-70-6-R5, rulings are not provided where all the relevant facts cannot be stated prior to the date of the transactions described in the ruling. When those transactions involve marketed tax shelters with numerous potential purchasers, it is not always possible to know enough about the valuations of the properties or about the financing and intentions of the purchasers.
Reasons: IC-70-6R5, Advance Income Tax Rulings
November 1, 2007
XXXXXXXXXX
Dear Colleague:
Thank you for your letter received on August 7, 2007, outlining the concerns of your constituent, XXXXXXXXXX, about rulings issued by the Canada Revenue Agency (CRA) on the subject of film tax shelters.
It is CRA policy to consider all requests and to issue a ruling, where possible. Information Circular 70-6R5, Advance Income Tax Rulings, outlines in detail the procedures that businesses should follow when making such a request. The information circular is available on the CRA Web site at
www.cra.gc.ca/E/pub/tp/ic70-6r5/README.html and it can also be obtained at any local tax services office or tax centre.
A ruling is useful only when all the relevant facts can be stated prior to the date of the transactions described in the ruling. When those transactions involve marketed tax shelters with numerous potential purchasers, it is not always possible to know enough about the valuations of the properties, or about the financing and the intentions of the purchasers.
The CRA takes pride in the quality of the services it provides, including the advance rulings process. While I regret that I am unable to meet with you and your constituent, Mr. Wayne Adams, Director General of the Income Tax Rulings Directorate, would be pleased to discuss XXXXXXXXXX ideas for improving that service with him. Mr. Adams can be reached by calling 0-613-957-2132 collect.
I trust that this will assist you in responding to XXXXXXXXXX.
Sincerely,
The Honourable Gordon O'Connor, P.C., M.P.
Gwen Moore
September 27, 2007
957-2141
2007-024862
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