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.
MINISTER/DM'S OFFICE 93-5382T ADM'S OFFICE 93-6508T RETURN TO RULINGS, ROOM 303, MET. BLDG. 93-6856T AUTHOR
SUBJECT OR CORPORATE CASE FILE December 9, 1993
XXXXXXXXXX
Dear XXXXXXXXXX
I am responding to your letter of October 14, 1993, addressed to the Honourable Garth Turner, former Minister of National Revenue, requesting a Ministerial Ruling on a charitable fundraising program proposed by XXXXXXXXXX Your client has also written to the Honourable David Anderson, Minister of National Revenue, on November 16, 1993, concerning this request.
You describe a program under which taxpayer/participants will be sought to pay all administrative costs, artist fees, etc., to produce a package of limited edition prints. The artist would retain the original piece of art and a small number of artist's proofs for future sale by the artist. The participant would then gift the prints, which he has paid to produce, to a registered charity for subsequent sale by the charity. The charity would issue a receipt to the participant.
The participant will receive no other consideration for his donation.
I believe that in his letter of October 6, 1993, Ernie Wheeler of the Rulings Directorate has provided you with all the guidance that it is possible to give based on the general information that you have provided to us. More specific confirmation may be provided in response to a request for an advance income tax ruling concerning proposed transactions with specific taxpayers. All the pertinent facts must be established at the time of the request for the ruling where a question of fact is involved. If you wish to obtain an advance income tax ruling for a particular taxpayer with respect to specific transactions which are contemplated, a written request for an advance income tax ruling can be submitted in accordance with Information Circular 70-6R2, a copy of which is enclosed herewith for your convenience.
Your client has referred to a judgement of the Tax Court of Canada under the Informal Procedure in the case of Francoeur v. Canada, (1992) T.C.J. No. 719 involving a similar arrangement. However, as your client pointed out, the Tax Court of Canada Act provides that a judgement under the Informal Procedure shall not be treated as a precedent.
Should you require further information, please do not hesitate to contact me.
Yours sincerely,Pierre Gravelle, Q.C.
W. P. Guglich
957-2102
December 6, 1993 933105
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© His Majesty the King in Right of Canada, 1993
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© Sa Majesté le Roi du Chef du Canada, 1993
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