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.
MINISTER/DM'S OFFICE 95-08511M
ADM'S OFFICE
RETURN TO RULINGS, 15th Floor, Albion Tower
February 2, 1996
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in response to your letter of November 15, 1995, addressed to the Honourable David Anderson, former Minister of National Revenue, about the proposed legislation concerning fiscal periods for professional corporations.
I have noted your concerns about the fairness of the proposals, contained in draft legislation released on July 19, 1995, by the Honourable Paul Martin, Minister of Finance. At that time, Mr. Martin announced that the Government had consulted with taxpayers and their elected representatives concerning the fiscal period proposals. As a result of those consultations, several modifications were incorporated in the draft legislation. For example, professional corporations that are not members of a partnership will be excluded from the measure.
You expressed concern regarding the draft legislation as it relates to a professional corporation that has deductible salary or wages payable to a specified shareholder of the corporation who is a practising member of the profession practised by the corporation. I am pleased to advise that this concern has been addressed in the add-back rule provided in the description of "D" in the definition of the term "December 31, 1995 income" for purposes of the 10-year transitional reserve contained in the Ways and Means Motion that Mr. Martin tabled in the House of Commons on December 12, 1995. I have attached a copy of the relevant pages for your information.
Revenue Canada will publish a guide called Tax Changes Relating to the 1995 Fiscal Year End, in mid-February 1996. Until the guide is made available, you can obtain more information by calling Mr. J. Barr, Assistant Director, Client Assistance, Victoria Tax Services Office at 363-8786 or by writing to him at the following address:
Victoria Tax Services
1415 Vancouver Street
Victoria, British Columbia
V8V 3W4
The Department appreciates being made aware of your concerns.
Yours sincerely,
Pierre Gravelle, Q.C.
Bill Kerr
957-2137
cc. Mr. J. Barr
Assistant Director
Client Assistance
Victoria Tax Services
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, 1996
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, 1996
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