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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
What is the Department’s position regarding the deductibility of lease inducement payments and other payments, such as leasing commissions, finders fees and marketing expenses, in light of the Canderel and Toronto College Park decisions?
Position:
The Department has yet to consider the impact of these cases.
Reasons:
The decisions were recently rendered by the Supreme Court of Canada and the Department has not yet had the opportunity to consider the cases fully.
5-980513
XXXXXXXXXX C. Chouinard
Attention: XXXXXXXXXX
March 18, 1998
Dear Madam:
Re: Lease Inducement Payments - Canderel and
Toronto College Park Decisions
This is in reply to your letter of February 26, 1998, wherein you inquired about the Department’s position regarding the deductibility of lease inducement payments and other payments, such as leasing commissions, finders fees and marketing expenses, in light of the decisions rendered by the Supreme Court of Canada in Canderel and Toronto College Park.
As these decisions have only recently been rendered by the Supreme Court of Canada, the Department has not yet had the opportunity to consider the cases fully. Accordingly, we cannot comment upon the Department’s position regarding the deductibility of lease inducement payments at this time.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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