Farm Equipment Income Tax and Canada Pension Contributions Remission Order

SI/92-28

FINANCIAL ADMINISTRATION ACT

Registration 1992-02-12

Order Respecting the Remission of Income Taxes and Canada Pension Plan Contributions Payable by Certain Taxpayers Pursuant to Reassessments under the Income Tax Act in Respect of Farm Equipment

P.C. 1992-166  1992-01-23

His Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of National Revenue and the Treasury Board, pursuant to subsections 23(2)Footnote * and (2.1)Footnote * of the Financial Administration Act, is pleased hereby to make the annexed Order respecting the remission of income taxes and Canada Pension Plan contributions payable by certain taxpayers pursuant to reassessments under the Income Tax Act in respect of farm equipment.

Short Title

 This Order may be cited as the Farm Equipment Income Tax and Canada Pension Plan Contributions Remission Order.

Interpretation

 In this Order,

Act

Act means the Income Tax Act; (Loi)

contributions

contributions means the contributions relevant to the taxes, and the relevant penalties and interest, paid or payable under the Canada Pension Plan; (cotisations RPC)

taxes

taxes means the taxes payable under Parts I to I.2 of the Act, the relevant refundable investment tax credit and the relevant penalties and interest; (impôts)

taxpayer

taxpayer means a person whose taxes payable under the Act for the year 1984, 1985 or 1986 were reassessed in respect of the effect of trade-in allowances on the cost of farm equipment; (contribuable)

trade-in allowance

trade-in allowance means, in respect of farm equipment acquired or traded in by a taxpayer, the trade-in allowance agreed on by the taxpayer and the vendor. (valeur de reprise)

Remission

 Subject to section 4, remission is hereby granted to each taxpayer of the amount by which the total taxes and contributions paid or payable or deemed to have been paid by the taxpayer for a taxation year exceed the total taxes and contributions that would be payable, would have been paid or would be deemed to have been paid by the taxpayer for that year if

  • (a) in respect of farm equipment acquired by the taxpayer that was the subject of a reassessment under the Act for the 1984, 1985 or 1986 taxation year and for the purchase of which the taxpayer received a trade-in allowance, the cost of the farm equipment acquired by the taxpayer were equal to the aggregate of the trade-in allowance and the value of any other consideration paid by the taxpayer; and

  • (b) in respect of the farm equipment traded in, the proceeds of the disposition of the farm equipment traded in were equal to the trade-in allowance.

Condition

 The remission granted to a taxpayer under section 3 is on condition that within 90 days after the day of mailing to the taxpayer of a notice from the Department of National Revenue in respect of this Order the taxpayer file with the Minister of National Revenue an undertaking and waiver acceptable to the Minister in which the taxpayer

  • (a) agrees to pay to Her Majesty from time to time when it would accrue the amount by which

    • (i) the total taxes and contributions that would be payable, would have been paid or would be deemed to have been paid by the taxpayer for any taxation year, whether ending before, on or after the day on which this Order is made, if, in respect of farm equipment acquired by the taxpayer that was the subject of a reassessment under the Act for the 1984, 1985 or 1986 taxation year and for the purchase of which the taxpayer received a trade-in allowance, the cost of the farm equipment acquired by the taxpayer were equal to the aggregate of the trade-in allowance and the value of any other consideration paid by the taxpayer, and in respect of the farm equipment traded in, the proceeds of disposition of the farm equipment traded in were equal to the trade-in allowance

    exceed

    • (ii) the total taxes and contributions paid or payable or deemed to have been paid by the taxpayer for the year; and

  • (b) undertakes to withdraw and forego all relevant current or future objections and appeals and waives all rights of objection and appeal in respect of any relevant assessment or reassessment.

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