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: Whether a letter received is sufficient to confirm that a purchase of a property will be an involuntary disposition for the purposes of section 44 of the ITA.
Position: We cannot provide a binding opinion except in the form of a ruling.
Reasons: The taxpayer should contact local TSO for a review of all relevant facts and documentation.
XXXXXXXXXX
2010-038868
Andrea Boyle, CGAJanuary 11, 2011
Dear XXXXXXXXXX :
Re: Expropriation
I am writing in reply to your follow-up letter dated November 22, 2010, in which you asked whether a letter which you have received from the British Columbia's Ministry of Transportation & Infrastructure is sufficient to confirm that the purchase of your property by the Ministry would be deemed to be an involuntary disposition for the purposes of section 44 of the Income Tax Act.
While it seems very probable from the letter provided that there is an intention on the part of the Ministry to take the property under statutory authority, we cannot provide a binding opinion to you on your specific situation. As previously indicated, a binding written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. A fee is charged for this service. This Information Circular and other Canada Revenue Agency publications can be accessed on our website at http://www.cra-arc.gc.ca.
Your request was not submitted as an advance income tax ruling request and involves an actual situation. The review of fact situations involving specific taxpayers and transactions is the responsibility of the local tax services office where the taxpayer resides. You can submit all relevant facts and documentation to the appropriate Tax Services Office ("TSO") for their views. A list of TSOs is available on the "Contact Us" page of the CRA website.
We trust that these comments will be of assistance.
Yours truly,
Guy Goulet CA, M.Fisc.
Acting Manager
for Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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