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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Operational Planing and Special Projects
Corporate Management Branch
Agriculture Canada 930078
Sir John Carling Building Glen Thornley
930 Carling Avenue (613) 957-2101
Ottawa, Ontario
K1A 0C5
Attention: Estelle Lavallee
February 10, 1993
Dear Sirs:
Re: Farm Support Programs
This is further to our letter of October 8, 1992 concerning the above noted subject in which we outlined the tax status of various farm support program payments. Under the heading "Taxation" we indicated that many of the program payments would be included in the income of a farmer pursuant to paragraph 12(1)(x) of the Income Tax Act (the"Act"). However, after further review and consideration we realize that the payments would automatically be included in the income of a farmer or farm business as business income under section 9 of the Act and it would not be necessary to invoke paragraph 12(1)(x).
The following are programs, the payments from which would be included in income as business income without the application of paragraph 12(1)(x):
Commodity Based Loan Act,
FSAM - II Fur, Maple Syrup and Honey
Agriculture Stabilization Act,
National Tripartite Stabilization Programs,
Waterfowl Crop Damage Compensation Program,
FSAM II - Ont. & B.C. Oil Seeds,
FSAM II - Prairie Grain & Oil Seeds,
FSAM II - Atlantic Grains & Oil Seeds,
FSAM II - Horticulture Component,
Canadian Agri-Food Development Initiative - offsets for
cost and expenses other that capital costs and
expenditures,
Ontario Wine Grape Price Support Program
Ontario Grape Surplus Purchase Program
Plant Quarantine
Rabies Program
Compensation for Animals Slaughtered
Anthrax Program
Feed Freight Assistance
The foregoing comments regarding the inclusion in income of payments out of the various programs are an expression of our opinion based on the limited information available.
A revised copy of the TAX STATUS OF FARM SUPPORT PAYMENTS report is included with the necessary changes having been made.
We regret any inconvenience that the above changes may cause.
Yours truly,
E. Wheeler
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1993
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, 1993
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