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.
MINISTER/DEPUTY MINISTER'S OFFICE 96-04401M
ADM'S OFFICE
RETURN TO RULINGS, 15TH FLOOR, 25 NICHOLAS ST.
PENDING
July 24, 1996
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter of June 5, 1996, in which you make representations on behalf of XXXXXXXXXX concerning the Auditor General's observations on the taxation of property held in two family trusts that left Canada.
The confidentiality provisions of the Income Tax Act prevent me from discussing the cases referred to in the Auditor General's report; however, I can assure you that Revenue Canada treats all taxpayers in accordance with the law and that these cases did not contravene any provisions of the Act.
Currently the law provides that any individual or trust residing in Canada that owns taxable Canadian property may leave Canada without having to pay capital gains tax at the time of departure. The capital gains tax, which has been in effect since 1972, is paid when the former resident actually sells the taxable Canadian property. This law is also affected by the application of Canadian tax treaties with other countries.
As you know, the House of Commons Standing Committee on Finance is studying the concerns expressed by the Auditor General. In the interim, Revenue Canada will not issue any advance income tax rulings dealing with those issues. The findings of the committee will determine the action that the Government will take.
I share your concern for the need to reassure Canadians that we are not protecting wealthy individuals who many believe do not pay their fair share of taxes. However, the Government must examine all the implications of making any significant changes to the law. The assistance of the Finance Committee will be invaluable in that regard.
I wish to thank you for expressing your concerns on this matter.
Yours sincerely,
Jane Stewart, P.C., M.P.
Catherine Bowen
957-2104
June 25, 1996
962188
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© Her Majesty the Queen in Right of Canada, 1996
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© Sa Majesté la Reine du Chef du Canada, 1996
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