16 August 1989 Ministerial Letter 74118 F - Tax Shelter Registration

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.

August 16, 1989

Dear Sirs:

Re:  Tax Shelter Registration

This is in reply to your letter of July 10, 1989 concerning the application of subsection 162(9) of the Income Tax Act (the "Act").

You described the following situation:

1.     a person accepts fully refundable deposits in respect of interests in a tax shelter before September, 1989; and

2.     a registration number in respect of this shelter is received after August, 1989 but before these interests are acquired.

In the above circumstances the Department would not impose a penalty under subsection 162(9) of the Act in respect of the refundable deposits accepted by the person before September 1989. The same treatment would be accorded a person who is in the same circumstances but who receives non-refundable deposits before September, 1989.  This is based on the view that, in general, a penalty provision should not be applied in respect of events occurring to its coming-into-force.

We trust this will be of assistance to you.

Yours truly,

for Director Small Business and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch

c.c.       Ron ScheyTax Avoidance SectionSpecial Audits Division