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 Remission of taxes will be granted in cases affected by the proposed amendments to section 10 as a result of the Freisen case.
Position: No.
The tax policy reflected in the coming into force provisions makes it clear that no remission should be granted.
Reasons:
The Press Release of the Department of Finance on this issue makes it clear that taxes should not be remitted.
January 19, 1996
Francois Cote HEADQUARTERS
A/Ministerial Correspondence Roberta Albert
Coordinator (613) 957-2100
Accounts Receivable Division
Room 7014
400 Cumberland PlaceAttention: Lois Willett
Ministerial Correspondence -XXXXXXXXXX
The following paragraphs are provided in response to your January 16, 1996 request for an insert to the above-noted response.
You have requested that a remission of taxes be considered based on the decision of the Supreme Court in the case of Friesen. However, in response to the decision in Friesen, the Department of Finance issued a News Release on December 20, 1995, a copy of which is enclosed, stating that they will amend the Income Tax Act relating to the valuation of inventory held as an adventure in the nature of trade. Its clear from the tax policy reflected in the coming into force of the proposed amendments that it would be inappropriate to allow any remission of taxes in a situation effected by the News Release.
Whether property is inventory or capital property is always a question of fact and it appears that your particular situation received due consideration by the Department in resolving this issue.
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation 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, 1996
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, 1996
Email this Content