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.
Prescribed International Development Assistance Programs ("PIDAPs") - Section 3400 of the Regulations to the Act (the "Regulations")
This is in response to your memorandum dated March 27, 1991 wherein you requested clarification of our interpretation of the above provision. Specifically, you were concerned with the effect of the April 1, 1986 change in the funding policy of the Canadian International Development Agency ("CIDA"). Prior to that date, a particular CIDA project would be funded either by CIDA loans or by CIDA contributions ("grants"), but not both. Effective April 1, 1986, all of CIDA's international development assistance programs would be funded only by way of grants. In addition, you questioned whether programs which are only partially funded by CIDA would nevertheless be PIDAP's as defined under section 3400 of the Regulations.
CIDA's move to the policy of funding international assistance programs only by way of grant, results in all CIDA international development programs that have been initiated after the date of the change in policy, being PIDAPs (i.e. none of the CIDA programs initiated under the new policy will be of the type carved out from the definition of PIDAPs in section 3400 of the Regulations, by the words "other than loan assistance funds" found in brackets therein).
The Department has taken an administrative position that a CIDA project which is technically a PIDAP (i.e. funded only by way of grant) but for which the funding agreement was initially signed prior to April 1, 1986 as a loan agreement (regardless of whether loan funds were actually advanced), will not be considered a PIDAP notwithstanding the fact that such loan agreement may have been renegotiated and signed after March 31, 1986 as a contribution/grant agreement. However, any CIDA project for which the funding agreement was not initially signed prior to April 1, 1986 as a loan agreement and thus is signed after March 31, 1986 as a contribution/grant agreement, will be considered to be a PIDAP within the meaning of section 3400 of the Regulations.
The word "financed" used in section 3400 of the Regulations, is not modified by terms such as significantly, principally or completely. Accordingly, it is our view that an international development assistance program that receives some CIDA funding (other than loan assistance funds) will be a PIDAP as defined in section 3400 of the Regulations.
ChiefForeign SectionReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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