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Obtaining a Ruling
If you require clarification of complex issues, it may be appropriate to request that the Income Taxation Branch provide an advance ruling or a technical interpretation. The Branch will issue, at no cost, written advance rulings and technical interpretations to explain technical matters relating to the International Financial Activity Act (IFAA).
For information purposes, the Ministry of Small Business and Revenue, Revenue Programs Division, Income Taxation Branch has made past rulings and technical interpretations available through their website.
Advance Rulings
- An advance ruling is a written statement the Income Taxation Branch provides on proposed transactions that sets out the Branch’s position on how the relevant provisions of the IFAA apply to a clearly defined fact situation of the claimant.
- Receiving an advance ruling enables claimants to decide on a particular course of action by providing certainty with respect to the implications of the IFAA to proposed business transactions. Accordingly, advance rulings are only given on proposed transactions which are seriously contemplated and are not of a hypothetical nature.
- Advance rulings cannot be provided on issues already under review or audit.
Technical Interpretations
- A technical interpretation provides the Branch’s view of how the IFAA would apply to a generic fact situation. In circumstances where an advance ruling cannot be provided, such as when the transactions in question have already occurred, the Branch will, upon request, provide a technical interpretation on the general issues surrounding the transaction.
- Technical interpretations are for general guidance only and do not imply any assurance over the treatment of the specific transactions involved.
- All written requests for an advance ruling or technical interpretation will receive a prompt acknowledgement. The acknowledgement will provide the name of a contact who can provide updates on the progress of the ruling or interpretation.
Further details on the International Financial Activity (IFA) program can be found in Bulletin IFA 001, International Financial Activity Overview.
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