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.
Subsection 37(2) and Subparagraph 37(7)(c)(i) of theIncome Tax Act
This is in response to the memorandum of February 4, 1991, prepared by F. Fontaine concerning the above provisions of theIncome Tax Act.
We agree that, since subsection 37(2) of the Act only applies to expenditures of a current nature, the words “of a current nature” in clause 37(7)(c)(i)(B) are redundant. However, we do not believe there is any lack of clarity since subsection 37(2) of the Act is the provision under which the allowable deduction would be determined and that provision restricts the deduction to expenditures of a current nature only.
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