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.
RESERVE RE: SALE OF CANADIAN RESOURCE PROPERTY
QUESTION 18
In what circumstances, if any, will Revenue Canada allow a taxpayer to claim a reserve under subsection 20(1)(n) where he has sold a Canadian resource property ("CRP") and a portion of the proceeds in respect of the sale are not due until after the end of the year in which the CRP is sold?
DEPARTMENT'S POSITION
It remains the Department's position that a reserve under subsection 20(1)(n) of the Act is generally not available in respect of an amount receivable but not yet due with regard to the disposition of a CRP. In our opinion, such a reserve may be available in limited circumstances in respect of CRP representing inventory to a taxpayer carrying on the business of trading or dealing in CRP.
CPTS June 17, 1993
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© 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
Email this Content