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.
Re: International Shipping Corporation Amendments
Question
International shipping amendments 19(1) On February 20, 1991, the Department of Finance indicated they planned to amend the Income Tax Act with respect to clarifying the residence of corporations engaged in international shipping. The proposed amendment provides that where a company is incorporated in a country other than Canada, at least 90% of its activities consist of international shipping, and at least 90% of its revenues are derived from those activities, it will be considered, for Canadian tax purposes, not to be a resident of Canada. When will additional information, such as an Interpretation Bulletin, be released with respect to this proposed amendment?
Department's Postion
The formulation of fiscal and legislative policy concerning taxation is the mandate of the Department of Finance. Accordingly, inquiries concerning proposed amendments to the Income Tax Act should be directed to that Department. The Department of Finance has announced that further information in respect of this proposed amendment may be obtained from Doug McFadyen, Tax Legislation Division, Department of Finance, (613) 996-5155. Interested persons should also refer to the Explanatory Note issued by the Department of Finance with the draft text of the proposed amendment.
The proposed amendment requires determinations to be made with respect to the circumstances of each taxpayer. Such determination will involve the consideration of corporate and commercial arrangements entered into by the taxpayer, some of which may not have been considered by Revenue Canada. Until it has had an opportunity to apply the amendment to different situations and determine its scope, Revenue Canada will not be issuing any general guidelines relating to the proposed amendment. Once the amendment becomes law, Revenue Canada will be pleased to entertain requests for advance rulings with respect to proposed transactions.
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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