CRA Income Tax Folios to replace interpretation bulletins

October 05, 2012 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, What's New from the Charities Directorate of CRA

CRA has announced that they will be replacing interpretation bulletins with Income Tax Folios.  Sounds like boring tax stuff - but it is not.  Part of the folio will be “SERIES 7 - CHARITIES AND NON-PROFIT ORGANIZATIONS Folio 1: Charitable donations and deductions Folio 2: Non-profit organizations”  Hopefully this initiative will result in more up-to-date and organized information on certain topics that are of interest to the non-profit and charity sector.  The project will apparently take a number of years to fully implement.  I think that the charity sector should begin a major lobbying campaign to have CRA label the Charities and Non-Proft Organizations as Series 1.  After all the charity sector is the best!

Here is an announcement from CRA:

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/ntrfls-eng.html


“Introducing Income Tax Folios

Income Tax Folios - A new income tax technical publication

The Canada Revenue Agency recognizes the value that Income Tax Interpretation Bulletins have for taxpayers and for tax professionals.

We have undertaken an initiative to introduce a new technical publication product to update the information currently found in the Income Tax Interpretation Bulletins and to introduce improved web functionality.

The new product will be known as the Income Tax Folios. The Income Tax Folios will be organized by subject matter into Series. Each Folio within a Series will be subdivided into topic-specific Chapters to better enable users to locate the information they need.

Phase-out of Income Tax Interpretation Bulletins and ITTNs

A Chapter of an Income Tax Folio will be an updated version of the technical content in one or more Income Tax Interpretation Bulletins. The Folios will also incorporate material currently contained in the Income Tax Technical News (ITTNs). Chapters will be published as the content has been updated. At that time, the Interpretation Bulletin or Bulletins and any ITTN updated by a Folio Chapter will be cancelled. It is expected that the update process will occur over a number of years.

Additionally, in connection with the Income Tax Folio initiative, and in order to remove redundant and outdated content from the CRA Web site, all of the archived Income Tax Interpretation Bulletins, nine of the current Income Tax Interpretation Bulletins and all archived ITTNs were cancelled, effective September 30, 2012. Please refer to Cancellation of Income Tax Technical Publications for more information.”


Here is the anticipated content of the folios:

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/flndx-eng.html

“Income Tax Folios Index
Income Tax Folios will be replacing Interpretation Bulletins over the next several years as the technical content is updated. For additional information, please refer to Introducing Income Tax Folios.

Income Tax Folios are organized into seven Series:

Series 1 - Individuals

Series 2 - Employers and Employees

Series 3 - Property, Investments and Savings Plans

Series 4 - Businesses

Series 5 - International and Residency

Series 6 - Trusts

Series 7 - Charities and Non-profit Organizations

Each Series is comprised of several Folios. A Folio will contain free-standing Chapters, each of which will address specific aspects of the Folio topic.

SERIES 1 - INDIVIDUALS
Folio 1: Health & medical

Folio 2: Students

Folio 3: Family unit issues

Folio 4: Personal credits

Folio 5: Transfers of income, property or rights to third parties

Folio 6: Deceased individual

SERIES 2 - EMPLOYERS AND EMPLOYEES
Folio 1: Specific plans offered by employers to employees
Folio 2: Deductions from employment income

Folio 3: Employment benefits

Folio 4: Information specific to particular fields of employment

SERIES 3 - PROPERTY, INVESTMENTS AND SAVINGS PLANS
Folio 1: Shares, shareholders & securities transactions

Folio 2: Dividends

Folio 3: Capital transactions

Folio 4: Capital cost allowance

Folio 5: Eligible capital property

Folio 6: Interest

Folio 7: Real estate or rental properties

Folio 8: Resource properties

Folio 9: Miscellaneous payments/receipts

Folio 10: RRSPs

Folio 11: Transfers between registered plans

SERIES 4 - BUSINESSES
Folio 1: General business concepts

Folio 2: Deducting business expenses

Folio 3: General principles of business income calculation

Folio 4: Corporations – status & structures

Folio 5: Tax deferred rollovers

Folio 6: Provisions applicable to specific corporations

Folio 7: Wind-ups, dissolutions and amalgamations

Folio 8: Losses

Folio 9: Bad debts & debt forgiveness

Folio 10: Inventory

Folio 11: Farmers

Folio 12: Contractors & construction

Folio 13: Income from professional practices

Folio 14: Income from artistic endeavours

Folio 15: Manufacturing and research & development

Folio 16: Partnerships

SERIES 5 - INTERNATIONAL AND RESIDENCY
Folio 1: Residency

Folio 2: Foreign tax credits

Folio 3: Cross-border issues

SERIES 6 - TRUSTS
Folio 1: Trusts and residency issues

Folio 2: Beneficiaries

Folio 3: Taxation of an intervivos trust and attribution

Folio 4: Testamentary trusts

SERIES 7 - CHARITIES AND NON-PROFIT ORGANIZATIONS
Folio 1: Charitable donations and deductions

Folio 2: Non-profit organizations”

 

Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

Contact

Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

mark@blumbergs.ca
416.361.1982
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