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: Whether section 67.1 of the Income Tax Act (the "Act") applies to frozen turkeys, fruit baskets, liquor and other such items which are given out as gifts to customers at Christmas or other special occasions.
Position: Yes.
Reasons: An amount paid or payable for any of the named items may be considered "an amount paid or payable in respect of the human consumption of food or beverages."
XXXXXXXXXX J. Gibbons, CGA
2000-006733
March 2, 2001
Dear XXXXXXXXXX :
We are replying to your letter dated January 16, 2001, in which you requested our comments whether section 67.1 of the Income Tax Act (the "Act") applies to frozen turkeys, fruit baskets, liquor and other such items which are given out as gifts to customers at Christmas or other special occasions.
As requested, we have considered the situation outlined in your letter and have provided some comments below. However, we cannot confirm the tax implications of particular transactions unless the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R4. Thus, our comments are of a general nature only.
In our view, an amount paid or payable for any of the above-named items may be considered "an amount paid or payable in respect of the human consumption of food or beverages," and thus would be subject to section 67.1 of the Act.
We trust that these comments will be of assistance.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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