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.
| 19(1) |
File No. 5-8941 |
| |
J. Chan |
| |
(613) 952-9019 |
November 23, 1989
Dear Sirs:
Re: Request for Technical Interpretation "Cost Amount" of Canadian Resource Property
We are writing in reply to your letter dated October 18, 1989, wherein you requested our interpretation of the meaning of "cost amount" of Canadian resource property for purposes of the Income Tax Act (the "Act").
As you indicate, the relevant provision of the Act to determining the cost amount of Canadian resource property is paragraph (f) of the definition of "cost amount" in subsection 248(1) which states that "cost amount" to a taxpayer of a property at any time means.
"in any other case, the cost to the taxpayer of the property as determined for the purpose of computing his income, except to the extent that such cost has been deducted in computing his income for any taxation year ending before that time;"
You submit that the foregoing definition should be interpreted such that the cost amount of Canadian resource property is equal to nil on the basis that no amount is deducted from the proceeds of disposition in determining the amount which is relevant for the purpose of computing a taxpayer's income for the year in which the disposition occurred.
COMMENTS
The Act does not provide for or require the identification of a cost amount in respect of any particular Canadian resource property for the purpose of computing a taxpayer's income. It provides only for the cumulative Canadian oil and gas property expense (CCOGPE).
Accordingly, it is our view that the cost amount of particular Canadian resource property is nil, rather than some portion of the CCOGPE for purposes of the Act.
The above comments are only expressions of opinion and as such should not be construed as advance income tax rulings, nor are they binding on the Department.
Yours truly,
Section ChiefResource Industries SectionBilingual Services and ResourceIndustries DivisionRulings Directorate
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, 1989
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, 1989
Email this Content