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.
Principal Issues: See Q&A
Position: See Q&A
Reasons: See Q&A
CLHIA Roundtable - May 20, 2011
Question 9 - Comfort Letters
At the 2009 CTF Round Table, CRA confirmed (in question 16) its practice of accepting tax returns filed on the basis of Department of Finance comfort letters. In at least one situation, the CRA auditor has proposed to reassess ignoring a comfort letter that was addressed to the specific taxpayer.
Question:
Has CRA's assessing practice changed since the 2009 CTF? If so, why?
CRA Response:
At the 2009 Annual Canadian Tax Foundation Conference, question 16 dealt with proposed law, draft legislation and comfort letters. In responding, the CRA confirmed its position regarding filings based on proposed changes to law. While it is the CRA's longstanding practice to ask taxpayers to file on the basis of proposed legislation, a comfort letter is not considered proposed legislation and usually only reflects the Department of Finance's views on a particular issue affecting a specific taxpayer. Under the self-assessment system of filing tax returns, taxpayers may decide to file based on a comfort letter. Generally the CRA will not reassess taxpayers who have filed on the basis of and in conformity with a comfort letter. There has been no change to our approach.
Robert Demeter
2011-039849
May 20, 2011
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