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.
932961
XXXXXXXXXX
Peter Lee
(613) 957-8977
Attention: XXXXXXXXXX
October 21, 1993
Dear Sirs:
RE: Canadian Exploration Expense - Paragraph 66.1(6)(a)
This is in reply to your letter dated October 4, 1993 requesting a technical interpretation of the above-noted provision in the Income Tax Act (the "Act") with respect to certain transactions which XXXXXXXXXX will be undertaking later in 1993 and early 1994.
As explained during our October 20, 1993 telephone conversation (XXXXXXXXXX/Chan), assurances regarding the income tax treatment of proposed transactions can only be given in the form of an advance ruling. In this regard, we refer you to Information Circular 70-6R2 dated September 28, 1990 and the Special Release thereto dated September 30, 1992. We acknowledge that your proposed transactions involving a bulk ore sample would have to commence at the beginning of the cold weather and accordingly, we confirm that should you request an advance ruling, your request could be considered on an urgent basis.
As requested in your letter, we confirm your understanding that pursuant to subparagraph 66.1(6)(a)(iii.1) of the Act, expenses which qualify for treatment thereunder are those which are incurred for the purpose specified therein. This represents our general view and the facts of a particular situation may lead to a different conclusion. In accordance with paragraph 21 of Information Circular 70-6R2, this opinion does not constitute an advance income tax ruling and consequently is not binding on Revenue Canada - Customs, Excise and Taxation.
If you have any further questions or wish to discuss any of the above, please contact the writer or John Chan, A/Chief, Resource Industries Section, at (613) 957-8976.
Yours truly,
for Director
Manufacturing Industries, Partnerships
and Trusts DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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