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.
Dear Sirs:
Re: Meaning of "Periodical"
Section 19 of the Income Tax Act (the "Act") prohibits a deduction for income tax purposes to a taxpayer for advertising in a periodical directed primarily to a market in Canada unless certain conditions relating to its ownership, content and preparation are met. We have been asked by two different taxpayers to provide advance income tax rulings, which are binding on our Department, confirming that their proposed publications will not be considered periodicals for the purposes of section 19 of the Act.
One taxpayer proposes
24(1)
24(1)
The word periodical is not defined in the Act and our department has taken the position that any publication which is produced periodically is considered to be a periodical. However, at this time we are interested in obtaining an expert opinion on what the meaning of the word periodical is considered to be in the publication industry. We have forwarded our questions to your directorate as they appear to be a subject matter within your mandate. Therefore we are requesting your comments on whether the enclosed 24(1) described above would be considered to be a periodical publishing industry. In addition, we are requesting a general definition or general guidelines as to the type of publication that would be considered a periodical.
Unfortunately, we are under time constraints to obtain your comments and therefore, request your response by February 15. Thank you for your cooperation on this matter. If you are unable to provide the comments requested, we would appreciate if you could suggest an alternative party from which we may obtain an expert opinion and if you would advise Catherine Bowen at 957-2096 immediately.
Yours truly,
B.W. DathDirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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