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 the donation of a right to use property can be considered a gift in kind.
Position: No
Reasons:A right to use property is a property. However, the granting of such a right is not a transfer of property per the Dunkelman case. Also, the legislation on attribution rules were revised to include not only transferred property but also "lent property". If all rights to use property resulted in a transfer there would be no need in section 74.1 for "lent property". XXXXXXXXXX .
971444
XXXXXXXXXX J.E. Grisé
(613) 957-2059
March 17, 1999
Dear XXXXXXXXXX:
Re: Gifts
This is in reply to your letter of May 27, 1997 requesting us to review our previously stated position in a letter dated July 6, 1995, to a Canadian university concerning the donation of a right to use a helicopter or other capital property to a registered charity. Your request and others have been the subject of an extensive review of this matter. We apologize for the delay.
It is now our position that the loan of property (including money) is not a gift for purposes of sections 110.1 and 118.1 of the Income Tax Act since such a loan does not constitute a transfer of property. Our revised position will be conveyed to the public by means of an article in our "Income Tax Technical News" publication.
Thank you for bringing this matter to our attention.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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