19 November 1990 Administrative Letter 900316 F - Ontario Foreign Tax Credit - Form T2036

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.

19(1)

November 19, 1990

Dear Sir:

Re:  Ontario Foreign Tax Credit - Form T2036

This is in reply to your letter dated March 26, 1990 whereby you inquired as to whether there is an error in Form T2036 and in the manner in which the Department calculates the Ontario Foreign Tax Credit.

The second last line of Form T2036 provides for the determination of an amount designated as "(B)" by the following formula:

We agree with your submission that the "Provincial Income Tax before Foreign Tax Credit" in the formula should be the amount of Ontario provincial income tax that would be payable had no dividend tax credit been available to or deducted by the taxpayer and that Form T2036 does not indicate this but rather implies that the "Provincial Income Tax before Foreign Tax Credit" is the amount equal to the sum of (a) the Basic Federal Tax multiplied by the provincial tax rate, and (b) the provincial surtax.

Form T2036 and the Department's computer system will be revised to ensure that Provincial Income Tax before Foreign Tax Credit is determined for residents of Ontario on the assumption that no dividend tax credit had been available to or claimed by the taxpayer.

We wish to thank you for bringing this matter to our attention.

We understand that you are representing  24(1)  and that you have requested that this appeal be held in abeyance pending receipt of a response to your letter of March 26, 1990. A copy of this letter is being forwarded to Olga Hawkins of the North York Appeals Branch who is responsible for administering the appeal of 19(1) and we ask that you contact Ms. Hawkins upon receipt of this letter so as to permit the processing of the appeal to proceed. Ms Hawkin's telephone number is 973-4159.

Yours truly,

for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch

c.c.      Revenue Canada North York Appeals36 Adelaide Street East9th floor West Attention:Olga Hawkins Section 130-4-0