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: 1. Eligibility of a community for the purposes of claiming the northern residents deduction.
Position: 1. The community is not currently in a prescribed zone. Any proposed changes to the Regulation must be initiated by the Department of Finance.
Reasons: 1. Regulation 7303.1.
April 23, 2013
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your correspondence received on March 12, 2013, about the northern residents deductions and the community of Loon Straits, Manitoba.
The Canada Revenue Agency (CRA) administers the northern residents deductions under the legislative requirements of the Income Tax Act. A residency deduction and a deduction for travel benefits are available to taxpayers who reside in a prescribed northern or intermediate zone listed in section 7303.1 of the Income Tax Regulations. The community of Loon Straits is not located in a prescribed zone.
You can find more information about northern residents deductions and prescribed zones on the CRA Web site at www.cra.gc.ca/nothernresidents.
Prescribing zones is a matter of tax policy. The Department of Finance Canada is responsible for tax policy and legislative changes to the Act and its regulations. Any proposed changes to tax policy or legislation would have to be considered by Finance Canada and approved by Parliament. I am therefore sending a copy of our correspondence to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
I trust the information I have provided and the referral are helpful.
Yours sincerely,
Gail Shea, P.C., M.P.
c.c.:The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Robert Dubis
(905) 721-5191
2013-048184
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