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.
April 14, 1998
Mr. R.C. Neville Resource Industries
Co-ordinator, Resource Industries Section
Industry Specialist Services Denise Dalphy
(613) 957-9231
Attention: B.A. Chisholm
980555
Decontracting Payments
This is in response to your memorandum of March 6, 1998 wherein you requested our opinion on the above-noted matter.
We agree that, except perhaps in a case where the early termination of a long term gas sales contract resulted in the collapse of a business, the Department should maintain its general position that the decontracting payments are received on income account. We further agree that the Department should continue to assert that the decontracting payments received are not income from production and are therefore not included in computing resource profits.
Please contact us if we can be of any further assistance.
Manager
Resource Industries Section
Resources, Partnerships and
Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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.../cont'd
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