Other restrictions of advance income tax rulings

If the transactions for which an advance income tax ruling was given have not been substantially completed within the time limit specified in the ruling, the ruling will not be binding upon the CRA unless the taxpayer obtains confirmation that the ruling is still in effect. The Directorate may give such confirmation for further specific periods. A request to extend the time limit must be submitted prior to the expiration of the time limit specified in the ruling.

An advance income tax ruling ceases to be valid if it was based on an interpretation of the law and that interpretation was subsequently changed by the CRA as a result of a court decision. The ruling will be considered binding upon the CRA only for the period prior to the date of the relevant court decision. Also, if the law upon which a ruling was based is amended, the ruling ceases to be valid from the effective date of the amendment. If an advance income tax ruling ceases to be valid in the foregoing circumstances, the taxpayer will not be notified by the Directorate.

When an interpretation has been changed by the CRA, the new interpretation will apply to all rulings issued after the effective date of change in interpretation. This will be the case whether or not the ruling request was received prior to the effective date of change in interpretation.

Changes in interpretation are announced publicly. Generally, such announcements will be in the CRA's Income Tax Technical News, in an interpretation bulletin, or at a public conference, and will specify an effective date.