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.
960936
XXXXXXXXXX Denise Dalphy
(613) 957-9231
Attention: XXXXXXXXXX
May 22, 1996
Dear Sirs:
Re: Patronage Allocations
This is in reply to your letter of March 12, 1996 wherein you enquire about the characterization of amounts included in income pursuant to subsection 135(7) of the Income Tax Act.
Determinations as to whether an amount that is required to be included in computing a taxpayer's income as an allocation in proportion to patronage pursuant to subsection 135(7) of the Act is income from an active business (and eligible for the small business deduction or the manufacturing and processing profits deduction), or is considered income that is included in determining "resource profits", as defined in section 1204 of the Income Tax Regulations, are questions of fact. We have not been provided with all facts that could be relevant in making such determinations, and, as such, we regret that we are unable to comment on the subject matter of your letter.
If your enquiry relates to proposed transactions, we would be pleased to give further consideration to these issues in the context of an advance income tax ruling request, where all relevant facts, documentation and other relevant information are available and those facts can reasonably be expected to prevail. Alternatively, should you wish to receive the Department's opinion on a particular completed transaction, we would advise you to contact the relevant Tax Services Office.
Yours truly,
for Director
Resources, Partnerships and Trusts 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