Section 207.31

Table of Contents

Administrative Policy

4 April 2016 Internal T.I. 2016-0625241I7 F - Application of section 207.31

tax on sales of ecological lands applies even if no deduction was claimed

A Canadian municipality now wishes to dispose of ecologically sensitive land to a real estate developer, which had donated the property to it more than six years’ previously and received a receipt, but did not claim a deduction therefor in any of its tax returns. In confirming that the municipality would be subject to the s. 207.31 tax on the disposition, CRA stated (TI translation):

The tax under section 207.31 is intended, among other things, to ensure the long term protection of ecologically sensitive land that has been donated under the Ecological Gifts Program. Consequently, we are of the view that the application of section 207.31 does not depend on whether the donor did not claim a tax benefit from the gift of the ecologically sensitive land.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.1 - Subsection 110.1(1) - Paragraph 110.1(1)(d) tax on subsequent disposition irrespective of deduction claimed 73