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. Taxpayer requested clarification of rules relating to the microFIT program.
Position: 1. No technical reply provided.
Reasons: 1. A previous technical interpretation addressed the taxpayer's enquiry.
August 23, 2013
XXXXXXXXXX
Dear XXXXXXXXXX:
I am responding to your correspondence sent to my predecessor, the Honourable Gail Shea, in which you expressed concern about the letter you received from the Income Tax Rulings Directorate (ITRD) of the Canada Revenue Agency (CRA). Please accept my apology for the delay in replying.
You say you need a ruling to know how much capital cost allowance you can claim for your house after installing solar equipment under the Ontario microFIT program. Your enquiry would not normally be replied to in the form of an advance income tax ruling. For an explanation of what an advance income tax ruling is, see Information Circular IC70-6R5, Advance Income Tax Rulings, available on the CRA Web site at www.cra.gc.ca/E/pub/tp/ic70-6r5.
In April, an income tax rulings officer called you about your correspondence of March 7, 16, 22, and April 1, 2013. The officer explained that the income and expenses relating to your participation in the Ontario microFIT program should be reported for income tax purposes. The ITRD also wrote to you on June 18, 2013, and explained the legislation.
You also ask for a change to the existing legislation about solar equipment that is included in Class 43.2 of Schedule II of the Income Tax Regulations. The CRA administers and enforces the Income Tax Act and its associated regulations as passed by Parliament. Legislation and policy are the responsibility of the Department of Finance Canada. You should direct any questions about this issue to that department by writing to Tax Policy Branch of Finance Canada, 17th Floor, East Tower, L'Esplanade Laurier, 140 O'Connor Street, Ottawa ON K1A 0G5.
The CRA is independent of the Ontario microFIT program. Its sole responsibility is to apply the Act to the business transactions that stem from the microFIT contract.
I regret that the service you received from the ITRD was not to your satisfaction.
I trust that the information I have provided is helpful.
Yours sincerely,
Kerry-Lynne D. Findlay, P.C., Q.C., M.P.
Robert Dubis
905-721-5191
2013-049719
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