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.
International Shipping Corporations Amendments
QUESTION
International shipping amendments XXX. On February 20, 1991, the Department of Finance indicated they planned to amend the Income Tax Act (the "Act") with respect to clarifying the residence of corporations engaged in international shipping. The proposed amendment provides that where a company is incorporated in a country other than Canada, at least 90% of its activities consist of international shipping, and at least 90T of its revenues are derived from those activities, it will be considered, for Canadian tax purposes, not to be a resident of Canada. When will additional information, such as an Interpretation Bulletin, be released with respect to this proposed amendment?
DEPARTMENT'S POSITION
The formulation of fiscal and legislative policy concerning taxation is the mandate of the Department of Finance. Accordingly, inquiries concerning proposed amendments to the Income Tax Act should be directed to that Department. The Department of Finance has announced that further information in respect of this proposed amendment may be obtained from Doug McFadyen, Tax Legislation Division, Department of Finance, (613) 996-5155. Interested persons should also refer to the Explanatory Note issued by the Department of Finance with the draft text of the proposed amendment.
The proposed amendment requires determinations to be made with respect to the circumstances of each taxpayer. Such determination will involve the consideration of corporate and commercial arrangements entered into by the taxpayer, some of which may not have been considered by Revenue Canada. Until it has had an opportunity to apply the amendment to different situations and determine its scope, Revenue Canada will not be issuing any general guidelines relating to the proposed amendment. Once the amendment becomes law, Revenue Canada will be pleased to entertain requests for advance rulings with respect to proposed transactions.
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, 1991
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, 1991
Email this Content