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: Does the CRA assess instalment interest and penalties where an inter vivos trust does not make instalment payments?
Position: Currently, the CRA does not so assess.
Reasons: Administrative position.
XXXXXXXXXX 2007-026007
January 16, 2008
Dear XXXXXXXXXX :
Re: Trust Instalment Payments
This is in reply to your letter of November 1, 2007, in which you requested written confirmation that it is the administrative policy of the Canada Revenue Agency not to assess any interest or penalties to an inter vivos trust that does not make instalment payments required under section 156 of the Income Tax Act.
As this query falls within the mandate of Assessment and Benefit Services Branch, we requested that Branch to consider your request. That Branch has confirmed that the Canada Revenue Agency does not currently assess any interest or penalties to an inter vivos trust that does not make the instalment payments required under section 156 of the Income Tax Act. The Canada Revenue Agency will communicate any change in this position in a clear and transparent manner.
Yours truly,
T. Murphy
Section Manager
for Division Director
International & Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
cc. Joffrine Mailhot, T1/T3 Returns Processing Section, Processing Division, Individual Returns & Payments Processing Directorate, Assessment and Benefit Services Branch
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