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.
Revenue Canada Taxation Head Office
G. Thornley (613) 957-2101
JUN 24 1988
XXXX
This is in reply to your letter of June 7, 1988 requesting an Advance Income Tax Ruling on behalf of XXXX who entered into a sale of property with the Township of XXXX.
We are enclosing a copy of Information Circular 70-6R which outlines the conditions under which Advance Income Tax Rulings are given. Please note that the hourly fee is now $65.00 and the deposit is $325.00.
Information Circular 70-6R sets out some minimum requirements and procedures for requesting advance rulings which you may have overlooked. Paragraph 6 states that rulings will be given only in respect of a proposed transaction. It would appear that the agreement of purchase and sale has already been executed. Paragraph 14(1) states in essence that rulings will not be given where the matter is primarily one of fact. Thus rulings will not be given on the valuation of property or whether or not they represent fair market value. Paragraphs 15 to 17 inclusive outline the basic format of a ruling request. You have not outlined the issues involved, set out a statement of facts, nor specified the specific provisions of the Income tax Act involved. In addition the ruling request and documentation must be in duplicate and be accompanied by an authorization from the party or parties involved.
With respect to the donation of property referred to in the Agreement of Purchase and Sale (the "Agreement"), Interpretation Bulletin IT-110R2 (copy attached) at paragraph 3 indicates that a gift, for charitable donation purposes, must be a voluntary transfer of property without valuable consideration. It is questionable that the gift of property referred to in the Agreement would qualify as a charitable donation under the present circumstances as the Township has indicated its willingness to purchase XXXX property for XXXX only if she gifts a particular portion of it at an agreed value of XXXX.
In view of the foregoing we are returning your documents and request for a ruling. Your deposit of $150.00 will be returned under separate cover. Should you wish to pursue your request we would be pleased to receive a revised submission.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1988
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1988
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