7 May 2012 CALU Roundtable Q. 1b, 2012-0436151C6 - Income Tax Folio Initiative Update

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: Q #1(b): CALU requested an update regarding which Interpretation Bulletins had been identified as priorities for update.

CALU Roundtable
May 7 – 8, 2012

ROUNDTABLE QUESTION # 1(b)

Q.1(b) Income Tax Folio Initiative

The Income Tax Rulings Directorate has announced that it will be updating the technical content and improving the functionality of Interpretation Bulletins through the creation of a replacement technical tax publication called the Income Tax Folios. Various stakeholders were canvassed to obtain feedback regarding which Bulletins would be priorities for update.

Could you comment on the priority status the following seven Bulletins identified by CALU in its response to this feedback request:

• IT-85R2 - Health and Welfare Trusts
• IT 223 – Overhead Expense Insurance
• IT 244 – Gifts of Life Insurance as Charitable Donations
• IT 430R3 – Life Insurance Proceeds Received by a Private Corporation
• IT 447 - Residence of a Trust or Estate
• IT 449R – Meaning of Vested Indefeasibly
• IT 533 – Interest Deductibility

A.1(b)

The Income Tax Rulings Directorate recognizes the value in being able to consult an authoritative source of technical tax information and the CRA’s interpretation of the legislation it administers. Accordingly, the Income Tax Rulings Directorate has undertaken to review and improve the income tax technical publications product.

Although much of the information contained in the 272 active Interpretation Bulletins is out of date, it is impossible to update 272 Bulletins all at once. The process is expected to take a number of years. Of necessity, it was decided that the initial focus should be on the topics that are the most important to the most stakeholders. To make this determination, a number of indicators were considered. We checked the number of hits each Bulletin received over the past several years on the CRA website. We also gathered similar data from the various commercial tax publishers. Officials at numerous areas within the CRA as well as members of tax professionals’ organizations in the private sector were consulted. All of this feedback and data permitted the identification of approximately 50 Bulletins to be addressed in the first several phases of the Folio Initiative.

Of the seven Bulletins specified in your question, IT-85R2, “Health and Welfare Trusts”, IT-447, “Residence of a Trust or Estate” and IT-533, “Interest Deductibility” were among those that emerged as the most in demand by the most number of stakeholders.

We note that even priority topics will take time to address and specific timelines will depend on the complexity of the particular topic as well as available resources. However, as Folios are completed, they will be published and in keeping with the established practice, the related Bulletin will then be cancelled.

Renée Shields
2012-043615