Mr. Speaker, with regard to part (a), Income Tax Folios are technical publications that present the CRA’s interpretation of the law, and that summarize tax court decisions and technical positions adopted by the CRA up to the date of a folio’s publication. As a result, Income Tax Folios are not subject to ministerial approval.
With regard to part (b), the work on Income Tax Folio S2-F3-C2 began in November 2012.
With regard to part (c), the CRA undertook the Income Tax Folios project in an effort to improve the way in which complex tax matters were explained to taxpayers and their representatives, i.e., accountants, lawyers, and other tax preparers, in order to improve their ability to comply with their tax obligations.
With regard to part (d), Income Tax Folio S2-F3-C2 was available to the public online on the CRA webpages, on the canada.ca website, from July 7, 2016, until October 11, 2017. On October 10, 2017, the Minister of National Revenue instructed CRA officials to clarify the wording of discounts on merchandise in the folio. As a result, the CRA removed the folio from its website and is reviewing the folio’s wording with respect to discounts on merchandise.
With regard to part (e), as folios are technical publications that present the CRA’s interpretation of the law and summarize tax court decisions and technical positions previously adopted by the CRA, no economic impact study is completed when folios are published.
With regard to part (f), Income Tax Folio S2-F3-C2 was developed by CRA officials. The draft folio was shared for consultation with officials from the Department of Finance and the Department of Justice as part of the folio publication process.
With regard to parts (g) to (h), no such agreements were signed.