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.
March 20, 1990
Mrs. D. Nuckle Provincial and
International
Resource Officer Relations Division
Enquiries E.E. Campbell
Ottawa District Office
Ontario Income Tax Act
Foreign Tax Credit
In our conversation of March 8 we discussed the calculation of the provincial foreign tax credit on form T2036. You were of the view that the multiplicand in the calculation, the provincial income tax before the foreign tax credit, was incorrect in view of the definition of "tax payable" and "tax otherwise payable" in section 7(1)(1) of the provincial Act. They mean the amount of tax payable under the provincial Act but for sections 120.1, 121 and 122.3 of the federal Act which are to be taken into consideration, so that the amount of provincial income tax for the calculation could be greater.
As noted we believe that your point was well taken and we enquired as to whether the form was to be altered. We were advised that it was not intended to revise the form at this point. The number of persons who would fall into this situation would be very small. Should someone ask that these other items be taken into consideration, then the request should be respected. It would seem that these would have to be handled manually.
In view of your comments on the form and the manuals, as well as the system, we have forwarded a copy of your RTM to the Returns Processing Division.
C. Savage
A/Director
Provincial and International
Relations Division
Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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