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.
October 16, 1986
TO PENTICTION DISTRICT OFFICE
ATTENTION M. Scott
Basic FIlesFROM D. Senecal
Resource Industries
Section
RE: Section 8 B.C. Income Tax Act
This is in reply to your memorandum of February 4, 1986, concerning the B. C. Royalty and Deemed Income Rebate which was recently forwarded to us by Provincial & International Relations Division for our consideration and response.
In our view, subsections 8(4) and 8(5) of the B.C. Income Tax Act clearly require P.I.P. grants to be added to the taxpayer's notional income for purposes of calculating the royalty and deemed income rebate. We agree with your comments that the actual taxable income of the taxpayer will already have been increased in the year to the extent that the claim: for C.E.E. or C.D.E. has been reduced by P.I.P. grants. While this result may not have been intended, an amendment to the Act would be required to correct the situation.
We also concur with your conclusion that no addition is required to be made to the B.C. notional income with respect to any Alberta Royalty Tax Credits received by the taxpayer.
C. Savage
Chief Resource Industries Section Bilingual Services and Resource Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1986
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© Sa Majesté la Reine du Chef du Canada, 1986
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