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:
Can the accrual rules for interest be reported by an individual pursuant to subsection 9(1)
Position:
No
Reasons:
12(4) is more specific
960751
XXXXXXXXXX C. Tremblay
Attention: XXXXXXXXXX
March 28, 1996
Dear Sirs:
Re: Subsections 9(1) and 12(4) of the Income Tax Act (the "Act")
This is in reply to your letter of February 22, 1996, wherein you requested our interpretation of the application of subsection 9(1), 12(4) and paragraph 12(1)(c) of the Act to facts set out therein.
The situation that is described appears to involve a series of actual completed transactions involving a specific taxpayer; consequently, your questions should be directed to your District Services Taxation Office which has the responsibility of determining the tax consequences of completed transactions and their implications to specific taxpayers. Although we are unable to provide any opinion in respect of the specific transactions described in your letter, we have set out some general comments which may be of some assistance.
Subsection 9(1) of the Act begins with the words "subject to this part," which in our view means that a more specific provision contained in Part I may alter the amount otherwise determined. For example, interest earned on investment contracts is subject to the specific provisions of section 12 of the Act. An investment contract is defined under subsection 12(11) of the Act. Subsection 12(4) of the Act begins with the words "Notwithstanding paragraph 1(c)" and applies where an individual taxpayer holds an interest in an investment contract. The subsection requires that an individual report the interest income on an investment contract for the year to the end of the day on the anniversary date of that investment contract.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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