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: Given the complexity of some measures, would the CRA consider issuing rulings in these areas when taxpayers are able to provide sufficient documentation and evidence to support the relevant facts and intentions?
Position: Yes in some cases.
Reasons: The CRA is committed to providing greater certainty for taxpayers by considering advance income tax rulings in situations that may involve factual determinations, provided sufficient supporting evidence is submitted, including certain areas where rulings were traditionally declined.
2025 CTF Annual Tax Conference
CRA Roundtable
Question 13: Expanding the Scope of Advance Income Tax Rulings
Given the growing complexity of various tax measures and the general need for upfront certainty, would the Canada Revenue Agency (“CRA”) consider broadening the scope of its advance income tax rulings (“Rulings”) in situations where taxpayers are able to provide sufficient supporting documentation and evidence to substantiate the relevant facts and intentions?
CRA Response
As outlined in paragraph 19.1 of Information Circular IC70-6R12 (“IC70-6R12”), the CRA generally does not issue Rulings that are conditional upon the existence of facts or intentions, particularly where these must be inferred from circumstances.
However, as also pointed out in that paragraph, the CRA has historically issued Rulings on determinations that were primarily factual where taxpayers provide complete, detailed and credible supporting documentation. For example, Rulings were issued on requests involving subsection 55(2) of the Income Tax Act (“Act”), on provisions that require the determination of the existence or absence of a series of transactions or events as well as the application of the general anti-avoidance rule in section 245 of the Act.
The CRA will explore opportunities to apply this approach more broadly while ensuring that the conditions described in paragraph 19.1 continue to be met. Additional subject matters where the representations of a taxpayer could potentially meet the requirements described in that paragraph, enabling the CRA to consider issuing a Ruling, might include:
- the income tax consequences of transactions and arrangements involving crypto assets.
- certain issues involving capital gain exemptions, including whether certain shares qualify as “qualified small business corporation shares” within the meaning of subsection 110.6(1) of the Act.
- whether certain expenditures qualify as “Canadian exploration expenditures” within the meaning of subsection 66.1(6) of the Act.
- whether certain per capita distributions made by an Indian Band to its members constitute income from a source.
- whether certain distributions made by a tax-exempt non-profit organization could result in the loss of its tax-exempt status.
- whether an organization is organized to qualify as a non-profit organization as described in paragraph 149(1)(l) of the Act.
- whether paragraph 149(1.2) of the Act applies to allow an entity earning certain income outside its geographical boundaries to retain its tax-exempt status under paragraph 149(1)(d.5) or (d.6).
It remains important to note that the binding portion of a Ruling is limited to the CRA’s interpretation of the law. The Ruling will always specify that it is based on the taxpayer’s representations regarding the facts and intentions, which continue to be subject to subsequent verification through audit or other compliance measures. The CRA also retains full discretion to decline any request, including those within the subject matters described above.
Where appropriate, taxpayers who would like to have a preliminary reaction on whether their situation meets the requirements described in paragraph 19.1 and the likelihood that the CRA might be in a position to issue a Ruling, may wish to submit a pre-ruling consultation request through the process described at paragraphs 30 to 40 of IC-70-6R12. At the conclusion of a pre-ruling consultation, the CRA will inform the taxpayer whether it can consider the issue further in the context of a Ruling request. This approach supports greater certainty for taxpayers, while maintaining consistency, transparency and the integrity of the Rulings process.
François Fournier-Gendron
2025-108082
December 2, 2025
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