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: When is interest chargeable on a section 160 assessment.
Position: Interest is chargeable from the date of the assessment.
Reasons: Paragraph 160(1)(e) of the Act has been amended to override Algoa Trust v. R.
XXXXXXXXXX 2008-028775
Lindsay Frank
(613) 948-2227
January 22, 2009
Dear XXXXXXXXXX :
Re: Proposed Subparagraph 160(1)(e)(i) of the Income Tax Act
This is in reply to your letter of July 23, 2008, in which you are seeking a technical interpretation of the above-referenced provision, which is designed to enable the Minister to charge interest on an assessment in respect of property transferred. Specifically, you would like to know whether such interest would be charged from the date of transfer, or from the date of assessment.
The intent of proposed subparagraph 160(1)(e)(i) of the Income Tax Act ("ITA"), as you alluded in your correspondence, is to override the outcome of Algoa Trust v. R., [1998] T.C.J. No. 292, which stands for the proposition that the Minister cannot charge interest on an assessment pursuant to section 160 of the ITA. It is our view that upon Royal Assent, the Minister will be allowed to charge interest from the date of the assessment.
I trust you find this satisfactory.
B.J. Skulski
Manager
Insolvency and Administrative Law Section
Business and Partnerships Division
Income Tax Rulings Directorate
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, 2009
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, 2009
Email this Content