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: Is a province considered a person for the purposes of section 231.2 of the Income Tax Act (the "Act")?
Position: Yes.
Reasons: Previous position regarding a reference to Her Majesty in right of a province.
December 19, 2012
Canada Revenue Agency HEADQUARTERS
Newfoundland and Labrador TSO Income Tax Rulings
Intergovernmental Relations Directorate
165 Duckworth Street, P.O. Box 12075 M. Gauthier
St. John's, Newfoundland A1B 4R5 (613) 957-2130
Attention: Mary Benson 2012-047276
Definition of person in its application to a provincial government
We are replying to you in response to your email of December 13, 2012. In our telephone conversation on December 17, 2012, you clarified that you would like confirmation that Her Majesty in right of a province (i.e. a provincial government) is considered a "person" for the purposes of section 231.2 of the Income Tax Act (the "Act").
We understand that a provincial official has questioned whether the federal government could, in the absence of an information exchange agreement, require information and/or documents from a province pursuant to section 231.2 of the Act.
Section 231.2 generally provides that the Minister may require any person to provide information or any document for any purpose relating to the administration or enforcement of the Act. A "person" is defined in subsection 248(1) of the Act as a "person, or any word or expression descriptive of a person, includes any corporation, and any entity exempt, because of subsection 149(1), from tax under Part I on all or part of the entity's taxable income and the heirs, executors, liquidators of a succession, administrators or other legal representatives of such a person, according to the law of that part of Canada to which the context extends".
It is our opinion that the definition of "person" includes a province. In the Exchequer Court of Canada decision in MNR v Braithwaite (70 DTC 6001), Justice Jackett stated that "In my view, there is no question that Her Majesty is a "person" and that the references in this appeal to the Province of Ontario are references to Her Majesty.".
Furthermore, there are examples in the Act where references to a person will either include or exclude Her Majesty. For example in subparagraph 149(1.2)(a)(ii), it states "a person who is Her Majesty in right of Canada or a province or a municipality or corporation" and in paragraph 149(1.1)(b), it states "one or more other persons (other than Her Majesty in right of Canada or a province, a municipality in Canada
" Therefore, a person would include Her Majesty in right of a province and a reference to Her Majesty in right of a province would be a reference to the provincial government including a ministry of that government. Accordingly, a province would be subject to section 231.2 of the Act.
If you have any questions regarding the above, please do not hesitate to contact Michel Gauthier at (613) 957-2130.
Terry Young, CPA, CA
Manager, Administrative Law Section
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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