Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: CRA assessment procedures and guidance relating to the taxation of artists who receive public grants.
Position: General comments provided.
Reasons: General comments provided.
Author: Sigouin, Renée
January 30, 2019
The Honourable Diane Lebouthillier, Minister of National Revenue, has asked me to reply to correspondence she received on December 18, 2018, from the office of the Honourable Pablo Rodriguez, Minister of Canadian Heritage and Multiculturalism, about the taxation of artists who receive public grants.
You recommend that the Canada Revenue Agency (CRA) review its assessment procedures and develop clearer guidance for auditors and granting bodies. Please be assured that the CRA regularly reviews its procedures to make sure they clearly reflect the legislative requirements of the Income Tax Act. CRA officials evaluate each situation using the facts and information available to them, and the CRA works constantly to ensure that its policies, procedures, and guidance materials support fair and consistent service to all taxpayers.
You may be interested to know that the CRA and the Canada Council for the Arts have a longstanding practice of collaborating together to discuss issues relating to the taxation of professional artists. Currently, they are working together to update still-sound publications to better reflect the current arts reality in Canada to provide greater clarity and guidance to artists.
I appreciate the opportunity to respond to your concerns and trust the information I have provided is helpful.
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
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