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 letter from a representative of the Ministry of the Attorney General is sufficient to establish that an organization is an agent of the Crown.
Position:
It is not sufficient.
Reasons:
The opinion that the organization is a Crown agent must be provided by the Attorney General or Deputy Attorney General of the province.
5-953080
XXXXXXXXXX C. Chouinard
Attention: XXXXXXXXXX
February 7, 1996
Dear XXXXXXXXXX:
Re: Crown Agents
We are writing in reply to your letter of November 15, 1995, wherein you asked us to confirm that XXXXXXXXXX would qualify as an agent of the Crown in right of the province of Ontario.
As indicated in Income Tax Ruling ATR-63, a copy of which is enclosed, where the statutory language of the legislation under which an entity was established is unclear as to whether or not the entity is an agent of the Crown, determination of the entity's status is a question of fact to be resolved on the basis of common law principles. In cases where such a determination must be made, the Department requests that the entity obtain an opinion from the Attorney General or Deputy Attorney General of the province, that the particular entity is an agent of the Crown under the common law. Given this opinion, the Department will accept that gifts to such an organization qualify as gifts to Her Majesty in right of the province for purposes of paragraph 110.1(1)(b) or subsection 118.1(1) of the Income Tax Act.
As the letter you provided does not give the opinion of the Attorney General or the Deputy Attorney General of Ontario, but rather the opinion of the Director of Legal Services of the Ministry of Finance, it does not meet our requirements. In this respect, you should note that the opinion must be that of the Attorney General or Deputy Attorney General, not a representative of the Ministry of the Attorney General.
We trust that these comments will be of assistance.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
Encl.
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