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.
Principal Issues: Whether the XXXXXXXXXX qualifies as a prescribed prize within the meaning of Regulation 7700
Position: Yes.
Reasons: Recognized by the general public and awarded for meritorious achievement in the sciences.
2005-014575
XXXXXXXXXX Charles Rafuse
613-957-8967
April 5, 2006
Dear XXXXXXXXXX:
Re: Prescribed Prizes
This is in reply to your letter of August 2, 2005 and our December 15, 2005 telephone conversation (XXXXXXXXXX/Rafuse), concerning whether the XXXXXXXXXX (the "Prize") given out annually by the XXXXXXXXXX (the "Foundation") could be considered a prescribed prize as set out in Section 7700 of the Income Tax Regulations (the "Regulations"). We apologize for the delay in responding to your request.
XXXXXXXXXX
Section 7700 of the Regulations defines a prescribed prize for the purpose of subparagraph 56(1)(n)(i) of the Income Tax Act (the "Act") as any prize which is recognized by the general public and which is awarded for meritorious achievement in the arts, the sciences or service to the public, but does not include any amount that can reasonably be regarded as having been received as compensation for services rendered or to be rendered. On the basis of the information described above, we agree that the Prize qualifies as a prescribed prize under section 7700 of the Regulations and therefore, is exempt from income under paragraph 56(1)(n) of the Act.
We trust this information is helpful.
Yours truly,
Randy Hewlett
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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