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.
W.C. Bailey
957-2061 24(1)
19(1)
May 10, 1990
Dear Sirs:
Re: Ontario Farm-Start Program
This will reply to your letter of February 26, 1990 regarding the status for tax purposes of grants received under the above-named program. We apologize for the delay in our response.
You are of the opinion that grants under the program are tax exempt based on the criteria contained in paragraph 39 of Interpretation Bulletin IT-276 .
Regretfully, that criteria is out of date as a result of the addition of paragraph 12(1)(x) to the Act applicable to amounts received after May 22, 1985. As a result some grants formerly considered non-taxable are now taxable.
We must therefore inform you that grants under the Ontario Farm-Start Program are taxable on receipt unless they can be considered to reduce the cost or capital cost of property acquired.
Yours sincerely,
E.M. Wheeler For Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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