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: Comments regarding subsection 66(12.61) contained in file # 982568.
Position: Comments clarified.
Reasons: Comments reflected a suggestion for greater certainty only; upon further consideration concluded that taxpayer would not be able to rely on subsection 66(12.61).
983306
XXXXXXXXXX A.A. Cameron
(613) 957-8975
Attention: XXXXXXXXXX January 11, 1999
Dear Sirs:
Re: Subsection 66(12.6) of the Income Tax Act (the “Act”)
We are writing further to your letter of December 8, 1998 wherein you requested that we reconsider certain comments made in our letter (the “Letter”) to you of October 28, 1998. The Letter concerned the above provision of the Act and amounts arising under the Mining Exploration Tax Credit (“METC”) program introduced in 1998 by the government of British Columbia.
In particular, you are concerned with the view expressed on page four of the Letter that “...to the extent that subsection 66(12.61) of the Act may be relevant to your situation, it would appear that the potential could exist for both the corporation and the Investor to argue entitlement to the METC.” You have indicated that it was not intended that subsection 66(12.61) of the Act have any application to METC and that the METC is intended to be available only to “persons actually incurring qualified expenditures” and not to “investors, such as flow-through shareholders or members of partnerships.” In addition, you have indicated that the METC legislation does not utilize any terms defined in the Act, such as “Canadian exploration expense,” in defining “qualified mining exploration expense.”
XXXXXXXXXX
However, after further consideration of this matter, we share your view that a taxpayer would not be able to rely on the provisions of subsection 66(12.61) of the Act to establish that an expense had been incurred for purposes of the definition of “qualifying mining exploration expense” contained in the METC legislation.
Please contact the writer if you have any further questions regarding this matter.
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
c.c. Bruno Fioravanti
- 1 -
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, 1999
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, 1999
Email this Content