Updates to Canadian information circulars and income tax technical bulletins.

TEI has written Canada Revenue Agency Deputy Commissioner William V. Baker, urging CRA to resume issuing timely updates to Information Circulars and income tax interpretation bulletins. The letter was prepared unter the aegis of TEI's Canadian Income Tax Committee, whose chair is David M. Penney of General Motors of Canada Limited. Contributing substantially to the development of TEI's letter were Grant L. Lee of HSBC Bank of Canada and Tim J. Bryant of ConocoPhillips Canada.

Tax Executives Institute was pleased to meet with representatives from Canada Revenue Agency (CRA) during the annual liaison meeting on December 5, 2006. One issue discussed was the frequency of updates to income tax interpretation bulletins (ITs) and Information Circulars (ICs). We were told that because of budget constraints, ITs and ICs are no longer being updated. TEI questions the efficacy of CRA's decision to eliminate this valuable service and urges the agency to reinstitute a process for delivering widely applicable, in-depth guidance similar to ITs and ICs on important technical topics and issues.

Background

Tax Executives Institute is the preeminent international association of business tax executives. The Institute's 6,600 professionals manage the tax affairs of 3,000 of the leading companies in North America, Europe, and Asia. Canadians constitute 10 percent of TEI's membership, with our Canadian members belonging to chapters in Calgary, Montreal, Toronto, and Vancouver, which together make up one of our nine geographic regions, and must contend daily with the planning and compliance aspects of Canada's business tax laws. Many of our non-Canadian members (including those in Europe and Asia) work for companies with substantial activities in Canada. The comments set forth in this letter reflect the views of the Institute as a whole, but more particularly those of our Canadian constituency.

TEI concerns itself with important issues of tax policy and administration and is dedicated to working with government agencies to reduce the costs and burdens of tax compliance and administration to our common benefit. In furtherance of this goal, TEI supports efforts to improve the tax laws and their administration at all levels of government.

Discussion

The dissemination of timely guidance is a critical CRA service for taxpayers and practitioners. By summarizing and publicizing legislative, administrative, and judicial developments, CRA assists taxpayers in understanding...