Cases
National R&D Inc. v. Canada, 2022 FCA 72
Regarding CRA Guidelines on what constituted scientific research and experimental development as defined in s. 248(1) and in confirming the Tax...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Scientific Research & Experimental Development | need for use of the scientific method in SR&ED | 215 |
| Tax Topics - General Concepts - Stare Decisis | courts are entitled to give precision to statutory language | 110 |
Canada v. Marchessault, 2008 DTC 6496, 2007 FCA 345
Before going on to find that the interpretation of s. 128(2)(d) of the Act was not subject to any ambiguity and that a CRA directive should be...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 128 - Subsection 128(2) | person who made a proposal was not a bankrupt | 112 |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | related interpretation provision not referenced | 112 |
Imperial Oil Ltd. v. Canada, 2004 DTC 6702, 2004 FCA 361, rev'd 2006 SCC 46
After noting that in the case before him the Crown was challenging the deduction under s. 20(1)(f) of amounts paid as a result of foreign currency...
Placer Dome Canada Ltd. v. Ontario (Minister of Finance), 2006 DTC 6532, 2006 SCC 20, [2006] 1 S.C.R. 715
After noting that the administrative position of the Minister had changed from a position initially supporting the taxpayer's reporting practice...
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|---|---|---|
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | presumption against tautology | 120 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | residual presumption in favour of the taxpayer | 133 |
| Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(1) - Paragraph 1204(1)(b) | cash-settled derivatives had the effect of fixing mine production] | 453 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges | “hedging “ includes cash settled derivatives including options | 461 |
| Tax Topics - Statutory Interpretation - Regulations/Statutory Delegation | addition of regulation did not significantly expand scope of tax | 264 |
Canada v. Whitney, 2002 DTC 7145, 2002 FCA 266
After noting that the ambiguity which the Tax Court judge had found in s. 56(1)(v) was based entirely on Interpretation Bulletin IT-220R2, Noël...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(v) | 54 |
Silicon Graphics Ltd. v. Canada, 2002 DTC 7113, 2002 FCA 260
Sexton J.A. noted (at p. 7120) with approval the indication in Canadian Occidental (U.S.) Petroleum Ltd. v. The Queen, 2001 DTC 295 (TCC) that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | U.S. public shareholders not a group; no de facto control by lender/licensor | 345 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | must be right to affect board or directly influence shareholders | 187 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(6) | 65 | |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | 23 | |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | 56 |
OSFC Holdings Ltd. v. Canada, 2001 DTC 5471, 2001 FCA 260
In light of a statement made in the Canadian Tax Journal by the Senior Assistant Deputy Minister of Finance which referred to the Furniss v....
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|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | significant disparity between tax benefit and commercial return from transaction | 263 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | policy against corporate loss trading | 229 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | s. 248(10) assimilates a subsequent transaction to a common-law series if it has some connection with the series and is completed in contemplation thereof | 344 |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | deeming v. definition provisions | 46 |
London Life Insurance Co. v. Canada, [2000] GSTC 111 (FCA)
Rothstein J.A. noted that the departure by the Minister in the case before him from the position taken in a CCRA Memorandum cast doubt on the...
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|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Improvement | 108 | |
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(2) | leasehold construction services were acquired for supply of leasehold improvements to landlord | 175 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | leasehold construction services were acquired for supply of leasehold improvements to landlord | 220 |
Owen Holdings Ltd. v. R., 97 DTC 5401, [1997] 3 C.T.C. 351 (FCA)
An application on behalf of the taxpayer, who had been assessed under s. 254(2), for all relevant advance income tax rulings (with names and other...
Riddell v. The Queen, 95 DTC 5526, [1995] 2 CTC 362 (FCTD)
Rouleau J. found, on the basis of correspondence between a field auditor and his superiors, that it was the policy of Revenue Canada to allow an...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 115 |
Ludmer v. The Queen, 95 DTC 5311, [1996] 3 CTC 74 (FCA)
Chevalier D.J. indicated that he would not allow pamphlets and other documents originating from the Minister into evidence for the purpose of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | 134 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | undertaking contrary to law not binding on CRA | 184 |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 45 |
The Queen v. Fibreco Export Inc., 95 DTC 5412, [1995] 2 CTC 172 (FCA)
After finding that the trial judge had erred in excluding evidence as to administrative practice and parliamentary history, Hugessen J.A. went on...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | 72 |
Ludmer v. The Queen, 95 DTC 5311, [1996] 3 CTC 74 (FCA)
Pamphlets and other documents originating with Revenue Canada were not admissible for the purpose of establishing that the Minister had bound...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | 134 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | undertaking contrary to law not binding on CRA | 184 |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 63 |
Harvey C. Smith Drugs Ltd. v. The Queen, [1995] 1 C.T.C. 143 (FCA)
After noting that paragraph 41 of IT-145R, dated June 19, 1981, was contrary to the taxpayer's position, Desjardin J. noted (p. 9):
"... It is now...
Connaught Laboratories Limited v. The Queen, 94 DTC 6697 (FCTD)
After distinguishing a technical interpretation of Revenue Canada, Reed J. stated (p. 6699) that "in any event, a departmental interpretation...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 161 - Subsection 161(7) | 147 |
The Queen v. Silden, 93 DTC 5362, [1993] 2 CTC 123 (FCA)
After finding that it was apparent from reading s. 15(2) in its entirety that it applied not only to loans made to shareholders as shareholders...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(2) | loan to 1/3 shareholder made in ordinary course but without specific repayment arrangement | 215 |
The Queen v. Kieboom, 92 DTC 6382, [1992] 2 CTC 59 (FCA)
In finding that the taxpayer was subject to tax under ss.245(2)(c) and 69(1)(b)(ii), Linden J.A. stated (pp. 6385-6386):
"In addition, this...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | 60 | |
| Tax Topics - Income Tax Act - Section 74.1 - Subsection 74.1(1) | 105 |
First Fund Genesis Corp. v. The Queen, 91 DTC 5361, [1991] 2 CTC 14 (FCTD)
Before referring to a Revenue Canada, Taxation guideline, Joyal J. stated (pp. 5369-5370):
"While such an interpretation cannot bind this court or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 194 - Subsection 194(4.2) | 115 | |
| Tax Topics - Statutory Interpretation - Retroactivity/Retrospectivity | 67 |
Vaillancourt v. The Queen, 91 DTC 5408 (FCA)
Before referring to IT-367R2 as confirming a conclusion he had already reached, Décary J.A. stated (pp. 5356-5357):
"It is well settled that...
Peter Cundill & Associates Ltd. v. The Queen, 91 DTC 5085, [1991] 1 CTC 197 (FCTD), aff'd 91 DTC 5543 (FCA)
Cullen J. relied upon the definition in IT-468 of management or administrative services.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(a) | 228 | |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | dependency on name fund manager and 50% owner | 184 |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | 74 |
Mattabi Mines Ltd. v. Ontario (Minister of Revenue), [1988] 2 CTC 294, [1988] 2 S.C.R. 175
"An Interpretation Bulletin does not, of course, have the binding effect of law (I will discuss this later) but such Bulletins do have persuasive...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | direct causal connection to income need not be demonstrated | 155 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) - Revising Claims | 77 | |
| Tax Topics - Statutory Interpretation - Comparison of Provisions | "income" has same meaning in different sections | 114 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 56 |
Johnson & Johnson Inc. v. D.MNR, 88 DTC 6235, [1988] 2CTC 1 (FCTD)
The Department's published list of exempt health goods was used to infer that interdental stimulators should also be exempt.
Smith, Kline & French Laboratories Ltd. v. A.G. Can. (1987), 12 F.T.R. 81
Internal government memoranda and statements by ministers were admissible to assist in establishing the effect (rather than the purpose) of...
West Hill Redevelopment Co. Ltd. v. The Queen, 87 DTC 5210, [1987] 1CTC 310 (FCTD)
A paragraph in the taxpayer's statement of claim describing somewhat similar practices of other taxpayers which had gone unchallenged by Revenue...
The Queen v. Hoffman, 85 DTC 5508, [1985] 2 CTC 347 (FCTD)
Extensive reliance was placed on statements of Ministerial policy in interpretation bulletins, in finding against the taxpayer.
Mother's Pizza Parlour Ltd. v. The Queen, 85 DTC 5271, [1985] 1 CTC 361 (FCTD), aff'd supra.
Rouleau, J. stated: "I have no difficulty with the proposition that income tax interpretation bulletins may be consulted ... but these materials...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property | 56 |
O'Brien v. The Queen, 85 DTC 5202, [1985] 1 CTC 285 (FCTD)
In rejecting the Crown's interpretation, Walsh, J. stated:
"Defendant's argument really is derived from Interpretation Bulletin 334R, which of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(k) | 27 |
Reilly Estate v. The Queen, 84 DTC 6001, [1984] CTC 21 (FCTD)
An accountant demonstrated that neglect or carelessness within the meaning of s. 152(4)(a)(i) was not attributable to him by showing that he had...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | careful but erroneous view of accountant was not carelessness | 141 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 94 |
The Queen v. Royal Trust Corp. of Canada, 83 DTC 5172, [1983] CTC 159 (FCA)
It was stated to be "not without interest and significance" that two Interpretation Bulletins gave what was found to be the correct interpretation...
Nowegijick v. The Queen, 83 DTC 5041, [1983] CTC 20, [1983] 1 S.C.R. 29
"Administrative policy and interpretation are not determinative but are entitled to weight and can be an 'important factor' in case of doubt...
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|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | 70 |
Wicks v. Firth, [1982] BTC 402 (HL)
An Inland Revenue press release was found to be relevant in allowing the taxpayer's appeals.
Brown v. The Queen, 79 DTC 5421, [1979] CTC 476 (FCTD)
It was suggested that a tax information pamphlet is inadmissible on evidentiary grounds if it does not indicate on its face that it was issued by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | 80 | |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) | 44 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | 46 |
Harel v. Deputy Minister of Revenue (Quebec), 77 DTC 5438, [1977] CTC 441, [1978] 1 S.C.R. 851
S.45 of the Income Tax Act (Quebec) was modeled on the corresponding provision in the federal Act, at a time when the administrative...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance | 76 |
See Also
Ellaway v. The Queen, 2019 TCC 118
An Australian resident who moved to Canada in February 2016 to take up residence there was properly denied her moving expenses of $59,188 because...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation | no moving expense deduction was available for a move to Canada | 185 |
Alta Energy Luxembourg S.A.R.L. v The Queen, 2018 TCC 152, aff'd 2020 FCA 43, aff'd 2021 SCC 49
After noting that the Treaty interpretation being advanced by the Crown (which had the effect of denying a Treaty benefit to a non-resident...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | a large exploration property in which only six wells had been drilled qualified as immovable property used in the business | 400 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no abuse in non-resident investors using a s.à r.l. to avoid capital gains tax on a new Canadian exploration company | 384 |
Pêcheries Yvon Savage Inc. v. The Queen, 2012 DTC 1059 [at 2781], 2011 TCC 477
The taxpayer argued that its renovated boat was qualified property even though it had, contrary to the definition of "qualified property" in s....
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|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property | 68 |
FLSmidth Ltd. v. The Queen, 2012 DTC 1052 [at 2745], 2012 TCC 3, aff'd 2013 DTC 5118 [at 6147], 2013 FCA 160
After referring to two CRA technical interpretations, Paris J. stated (at para. 44, and before citing Nowegijick):
While these interpretations are...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 16 - Subsection 16(1) | regard to economic substance | 138 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(12) | 303 | |
| Tax Topics - Income Tax Act - Section 68 | 138 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 24 | no double taxation engaging Art.2(a) of U.S. Treaty | 258 |
Fleet v. Canada (Attorney General), 2010 DTC 5094 [at 6912], 2010 FC 609
After referring to CRA's Information Circular respecting the circumstances in which the Minister may waive interest and penalties, Crampton, J....
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|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | 139 |
Parker Brothers Textile Mills Limited v. The Queen, 2007 DTC 610, 2007 TCC 74
After noting that IT-350R indicated that the deduction under s. 20(1)(dd) was available to a person who would be a potential tenant of premises at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 145 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(dd) | related company could acquire the site | 125 |
Karia v. Canada (Minister of National Revenue), 2005 DTC 5282, 2005 FC 639
A statement in Information Circular IC00-1R, that a disclosure will be treated as voluntary if the taxpayer initiated it without knowledge of an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | 309 |
Kruco Inc. v. The Queen, 2001 DTC 668 (TCC), aff'd 2003 FCA 284
Dussault T.C.J. indicated (at p. 690) that accepting the administrative policy of the Minister in that case respecting the computation of safe...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | 81 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | safe income | 72 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | safe income included phantom income mandated to be included in income by the ITA | 208 |
Safety Boss Ltd. v. The Queen, 2000 DTC 1767 (TCC)
Before referring to a statement at the 1981 Revenue Canada Round Table of the Canadian Tax Foundation, Bowman TCJ. stated (at p. 1773) that "while...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | conferral on corp increasing its value is benefit conferred on shareholder | 149 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) | 293 |
Csi Development Corp. v. R., 99 DTC 1139, [1999] 3 CTC 2421 (TCC)
After noting that the capital dividend account definition in s. 89(1) was silent on the treatment of the non-taxable portion of a capital gain...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account | 56 |
Northwest Hydraulic Consultants Ltd. v. R., 98 DTC 1839, [1998] 3 CTC 2520 (TCC)
Bowman TCJ. stated (at pp. 1840-1841):
"In general I am reluctant to rely too heavily on interpretation bulletins and information circulars in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Scientific Research & Experimental Development | 5 factors test | 163 |
Ainsley Financial Corp. v. Ontario Securities Commission, 21 O.R. (3d) 104, 121 D.L.R. (4th) 79 (C.A.)
In finding that the O.S.C. had no authority to issue Policy Statement 1.10 (relating to the marketing and sale of penny stocks by securities...
Kaplan Estate v. The Queen, 94 DTC 1816 (TCC)
Paragraph 9 of Article XIII of the U.S. Convention was interpreted contrary to the position of the Minister in light of the Technical Explanation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | period starts running no earlier than 1972 | 165 |
R. v. Inland Revenue Commissioners, Ex Parte Matrix Securities Ltd., [1994] BTC 85 (HL)
Because statements made in an application to Inland Revenue for an advance clearance were materially inaccurate or misleading, Inland Revenue was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 343 |
Ouellet v. The Queen, 94 DTC 1315, [1994] 1 CTC 2645 (TCC)
Before partially granting a motion for the filing of a list of administrative interpretations in connection with an appeal by a judge of a...
Stevens v. MNR, 93 DTC 291, [1993] 1 CTC 2429 (TCC)
After noting that the taxpayer was not, in fact, covered by a statement of administrative policy in an Interpretation Bulletin, Mogan J. noted...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 136 |
Texasgulf, Inc. v. U.S., 89-1 U.S.TC 88079 (US Cl. Ct.)
"While it is true that private letter rulings reveal the agency's interpretation of statutes (and regulations promulgated pursuant to those...
International Brotherhood of Teamsters v. Daniel, 439 U.S. 551 (1979)
At 566:
"It is a commonplace in our jurisprudence that an administrative agency's consistent, longstanding interpretation of the statute under...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(2) - Paragraph 108(2)(b) | 125 |
Administrative Policy
21 November 2017 CTF Roundtable Q. 7, 2017-0724261C6 - CRA Update
When the Folios project commenced, 265 related IT Bulletins were identified as being in need of updating. Since 2013, 39 folios have been...
85 C.T. - Q.4
An Interpretation Bulletin can be relied upon in virtually every case.
85 C.R. - Q27
A statement at the 1980 Round Table was a public announcement of policy.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) | 42 |
85 C.R. - Q.43
A ruling will be respected.
80 C.R. - Q.1
Where a change in RC interpretation is to the detriment of taxpayers, a coming-into force provision is usually provided where the consequences to...
79 C.R. - Q.8
Prepared statements of RC officials given at meetings such as Revenue Canada Round Tables are similar to Bulletins - as correct a statement of the...