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: Concern expressed over the impact of draft section 3.1 of the Income Tax Act.
Position: Finance intends to address the concerns raised prior to the legislation being enacted.
Reasons: There has been extensive public consultation with Finance since release.
Signed on July 5, 2006
XXXXXXXXXX
Dear Colleague:
Thank you for your letter received on May 15, 2006, and the attached copy of correspondence from your constituent, XXXXXXXXXX, concerning proposed section 3.1 of the Income Tax Act.
The proposed legislation, released by the Department of Finance Canada on October 31, 2003, deals with the deductibility of interest and other expenses for income tax purposes. The intent of the proposed legislation is to address concerns resulting from adverse court decisions that departed significantly from what the Government had considered to be the law in this area.
Since the release date, there has been an extensive consultation period during which public concern has been expressed that the proposed legislation goes well beyond how the law was applied before the adverse court decisions. It is my understanding that the Department of Finance Canada continues to receive submissions on the draft legislation and intends to address the concerns raised prior to enacting it. I assure you that our colleague the Honourable Jim Flaherty, Minister of Finance, is aware of the concerns expressed by your constituent on this issue.
I trust that this explanation will assist you in responding to XXXXXXXXXX.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
c.c.: The Honourable Jim Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Randy Hewlett
957-2049
2006-018807
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, 2006
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, 2006
Email this Content