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.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether a corporation owned by an Indian band can request a refund of taxes paid on the basis of the Otineka Development Corporation Ltd. case?
Position TAKEN:
No refund of taxes.
Reasons FOR POSITION TAKEN:
The Department does not reassess retroactively on the basis of a court decision.
November 15, 1994
Winnipeg District Office Head Office
Client Assistance Rulings Directorate
C. Chouinard
Attention: Randy Scharnik 957-8953
7-942091
XXXXXXXXXX - Paragraph 149(1)(d) of the Income Tax Act
This is in response to your memorandum of August 9, 1994 regarding the application of the Otineka Development Corporation Ltd. case to the above-mentioned corporation.
We understand that the above-mentioned corporation has requested a refund of taxes for the 1990 to 1994 taxation years, on the basis that their situation is not unlike that of the Otineka Development Corp. Ltd. and, accordingly, that it is a tax-exempt corporation under paragraph 149(1)(d) of the Income Tax Act.
As a general rule, the Department does not normally reassess on the basis of a court decision, since that would require a retroactive application of the court decision. Accordingly, since the taxpayer's request for a refund of taxes would require a retroactive application of the Otineka case, it should be denied.
R. Albert
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch
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