,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

            ,9=m,n ,circul>
    
,subject3 ,tax ,%elt] ,report+
,numb]3 #hi-d
,date3 ,augu/ #ad1 #aihi

#a4 ,! purpose ( ? circul> is 6set \
  guidel9es 6assi/ ! promot] (a tax
  %elt] 6prep>e & file3
  7a7 ! applic,n =m nec 6obta9 a tax
    %elt] id5tific,n numb]2 &
  7b7 ! tax %elt] 9=m,n return &
    support+ supple;t>ies4 ,? circul> al
    provides guidel9es = 9ve/ors :o >e
    claim+ a tax %elt] deduc;n 9 _!
    9come tax return4
  
  ,! -+ 96=ce date (! report+ require;ts
  is ,septemb] #a1 #aihi4


                                      #a
                ,promot]             a#a
    
#b4 ,a tax %elt] promot] is any p]son :o
  9 ! c\rse (a busi;s sells1 issues or
  promotes ! sale1 issu.e or acquisi;n (
  an 9t]e/ 9 a tax %elt] or :o acts z an
  ag5t or advisor 9 respect ( s*
  activities4 ,? def9i;n w apply 6all
  p]sons responsi# =! sale (a tax %elt]1
  9clud+ brok]s1 sales ag5ts & advisors4
  ,"! may 2 m ?an "o promot] =! same tax
  %elt]4

              ,tax ,%elt]
    
#c4 ,a tax %elt] is def9$ z any prop]ty
  ( : x is expect$1 bas$ on /ate;ts or
  repres5t,ns made or propos$ 6be made 9
  3nec;n )! prop]ty1 t ! a7regate (!
  losses or o!r am.ts1 calculat$ 9 any
  (! relevant ye>s1 : a pur*as] w 2
  5titl$ 6deduct 9 tax,n ye>s 5d+ )9 f\r
  ye>s (! date ( acquisi;n (! prop]ty w
  exce$ ! co/ (! 9t]e/ 9 ! prop]ty 7less
  prescrib$ b5efits7 6! pur*as]4 ,!   #b
                 #hi-d               b#a
  co/ (! 9t]e/ 9 ! prop]ty is 6be reduc$
  0prescrib$ b5efits 6be rcvd or 5joy$
  0! pur*as] or a p]son ) :om ! pur*as]
  does n d1l at >ms l5g?4 ,prescrib$
  b5efits w 9clude tax cr$its1 rev5ue
  gu>antees1 3t+5t liabilities1 limit$
  rec\rse debt & "rs ( ex*ange or 3v].n4
--------------------------------------#b
  ,! def9i;n ( :at 3/itutes a tax %elt]
  dep5ds 5tirely on ! r1sona# 9f];es 6be
  drawn f repres5t,ns made 9 3nec;n )!
  prop]ty4 ,repres5t,ns wd 9clude writt5
  repres5t,ns s* z ^? 3ta9$ 9 sales
  bro*ures or adv]tise;ts & v]bal
  repres5t,ns s* z ^? made 9 public or
  private 9=m,n or sales meet+s4 ,a tax
  %elt] does n 9clude prop]ty t is a
  fl[-"? %>e or a prescrib$ prop]ty4
  ,prescrib$ prop]ty 9 rel,n 6a tax
  %elt] m1ns prop]ty t is a regi/]$ p5.n
  fund or plan1 a regi/]$ retire;t sav+s
  plan1 a def]r$ pr(it-%>+ plan1 a
  regi/]$ retire;t 9come fund or a
  regi/]$ $uc,n sav+s plan4           #c
      ,"p ;,i--,fil+ ( ,applic,n =   a#b
     ,tax ,%elt] ,id5tific,n ,numb]
       & ,"utak+ 6,keep ,books &
         ,records--,=m ,t#ejja4
    
#d4 ,subsec;n #bcg.a7#b7 (! ,9come ,tax
  ,act requires ! promot] (a tax %elt]
  6apply 9 prescrib$ =m = an id5tific,n
  numb] = ea* tax %elt]4 ,": "! is m ?an
  "o promot] (! same tax %elt]1 an
  applic,n 0"o (! promot]s 4*>ges ! o!rs
  f ! oblig,n 6make an applic,n4 ,! =m
  is availa# at all ,4trict ,tax,n
  (fices ( ,rev5ue ,canada1 ,tax,n4
#e4 ,subsec;n #bcg.a7#c7 (! ,act /ates !
  ,m9i/] % issue an id5tific,n numb] ^u
  applic,n if ! prescrib$ 9=m,n is
  submitt$ & an "utak+ satisfactory 6!
  ,m9i/] is giv5 9 respect (! cu/ody (!
  books & records (! tax %elt]4 ,an
  "utak+ 0a p]son :o proposes 6sell or
  issue 9t]e/s 9 a tax %elt] 6keep !
  requisite books & records at t p]son's
  normal place ( busi;s 9 ,canada w
  norm,y 2 satisfactory4 ,an          #d
                 #hi-d               b#b
  example ( an una3epta# "utak+ wd 2 ":
  ! promot]'s place ( busi;s is 9
  ,toronto1 ,ont>io b ! books & records
  >e ma9ta9$ 9 ,:itehorse1 ,yukon
  ,t]ritory4

  ,! prescrib$ 9=m,n requir$ is detail$
  on =m ,t#ejja & 9cludes ! "n & a4ress
  (! promot]1 loc,n (! books & records1
  ! p]son 63tact = fur!r 9=m,n1 ! price
  p] unit & numb] ( units (f]$ = sale4
  ,9 a4i;n1 copies (! sales bro*ure1
  prospectus1 sell+ 9/ru;ts1 & o!r
  relevant docu;t,n >e 6be atta*$ 6! =m4
#f4 ,subsec;n #bcg.a7#d7 (! ,act
  requires t an id5tific,n numb] =a tax
  %elt] 2 obta9$ 2f a p]son c sell1
  issue or a3ept a 3tribu;n t[>ds !
  acquisi;n ( 9t]e/s 9 a tax %elt]4 ,?
  require;t applies 6p]sons :o sell or
  issue 9t]e/s z ag5ts or pr9cipals4
  ,prelim9>y promo;ns >e n a6ect$ 0?
  subsec;n1 z l;g z no actual sales >e
                                      #e
                 #hi-d               c#b
  3clud$ or 3tribu;ns rcvd 2f !
  id5tific,n numb] is issu$4
#g4 ,an id5tific,n numb] is requir$ =
  any tax %elt] ": sales h o3urr$ af
  ,augu/ #ca1 #aihi1 9clud+ tax %elt]s
  =m$ prior 6,septemb] #a1
--------------------------------------#c
  #aihi4 ,if a tax %elt] 0 =m$ prior
  6,septemb] #a1 #aihi1 b no sales
  o3urr$ af ,augu/ #ca1 #aihi1 an
  id5tific,n numb] is n requir$4
#h4 ,subsec;n #bcg.a7#e7 (! ,act
  requires t ! promot]s (a tax %elt]
  make r1sona# ef=ts 65sure t !
  id5tific,n numb] assign$ 6a tax %elt]
  is provid$ 6e p]son :o acquires an
  9t]e/ 9 ! tax %elt]4 ,9 ! case (a sale
  or issu.e ( an 9t]e/ 0any promot] (a
  tax %elt]1 ! promot] is 6provide !
  id5tific,n numb] 6! pur*as] directly4
  ,= subsequ5t sales ( 9t]e/s 9 ! tax
  %elt] = : ! promot] is n actu,y
  9volv$1 ! promot]'s duty w norm,y 2
  satisfi$ 05sur+ t ! id5tific,n      #f
                 #hi-d               a#c
  numb] is cle>ly m>k$ on ea* c]tificate
  ( [n]%ip4
#i4 ,e promot] (a tax %elt] % 9clude on
  e writt5 /ate;t t ref]s 6! id5tific,n
  numb] (! tax %elt] ! foll[+ /ate;t3

    8,! id5tific,n numb] issu$ = ? tax
    %elt] % 2 9clud$ 9 any 9come tax
    return fil$ 0! 9ve/or4 ,issu.e (!
    id5tific,n numb] is = adm9i/rative
    purposes only & does n 9 any way
    3firm ! 5title;t ( an 9ve/or 6claim
    any tax b5efits associat$ )! tax
    %elt]40
#aj4 ,ea* promot] :o prep>es a /ate;t (
  e>n+s =a tax %elt] % prom95tly 4play !
  tax %elt] id5tific,n numb] on ! upp]
  "r-h& corn] (! /ate;t4

               ,p5alties
    
#aj4
  7a7 ,subsec;n #afb7#i7 (! ,act
    provides t e p]son :o3            #g
                 #hi-d               b#c
    7;i7 ,files false or misl1d+ 9=m,n 9
      ! =m1 8applic,n = tax %elt]
      id5tific,n numb] & "utak+ 6keep
      books & records01 or
    7;ii7 :e!r z a pr9cipal or z an ag5t
      sells1 issues or a3epts a 3tribu;n
      = an 9t]e/ 9 a tax %elt] 2f !
      m9i/] has issu$ an id5tific,n
      numb]
  is lia# 6a p5alty equal 6! grt] (3
    7;iii7 4#ejj &
    7;iv7 #c p]c5t (! total co/ 6ea*
      pur*as] ( 9t]e/s sold 2f ! correct
      9=m,n is fil$ )! m9i/] 77;i7 abv71
      or ! id5tific,n numb] is issu$
      77;ii7 abv74
  7b7 ,subsec;n #bci7#b.a7 provides t x
    is a crim9al (f;e 6wil;lly provide
    an 9correct id5tific,n numb] =a tax
    %elt] 6ano!r p]son4 ,^u summ>y
    3vic;n1 a p]son c 2 s5t;ed 6a f9e (
    n less ?an #ajj p]c5t & n m ?an #bjj
    p]c5t (! co/ (! prop]ty 6! o!r
                                      #h
                 #hi-d               c#c
    p]son1 or imprison;t ( up 6two ye>s1
    or bo? ! f9e & imprison;t4
--------------------------------------#d
     ,"p ,,ii--,fil+ ( ,tax ,%elt]
       ,9=m,n ,return1 ,t#ejjb1 &
           ,tax ,%elt] ,9=m,n
        ,supple;t>ies1 ,t#ejjc4
    
#ab4 ,subsec;n #bcg.a7#g7 (! ,act
  imposes an oblig,n on a promot] 6make
  an 9=m,n return 9 respect ( all
  acquisi;ns ( an 9t]e/ 9 a tax %elt]4
  ,! oblig,n is impos$ on e promot] f
  :om an 9t]e/ 9 ! tax %elt] 0 acquir$1
  :o a3ept$ a 3tribu;n 9 respect ( an
  acquisi;n ( an 9t]e/ 9 ! tax %elt] or
  :o act$ z ag5t 9 respect ( an
  acquisi;n ( an 9t]e/ 9 ! tax %elt] 9 a
  cal5d> ye>1 un.s an 9=m,n return 9
  respect (! acquisi;n has previ\sly be5
  made4 ,! ,return & ,supple;t>y =ms >e
  availa# at all ,4trict ,tax,n (fices (
  ,rev5ue ,canada1 ,tax,n4
                                      #i
                 #hi-d               a#d
#ac4 ,! ,9=m,n ,return fil$ 9 prescrib$
  =m m/ 3ta93
  7a7 ! "n1 a4ress & social 9sur.e numb]
    ( ea* p]son :o acquir$ an 9t]e/ 9 !
    tax %elt] 9 ! ye>1
  7b7 ! am.t pd 0t p]son =! 9t]e/1 &
  7c7 s* o!r 9=m,n z may 2 requir$ 0!
    prescrib$ =m4
  
,note3
  ,=! #aihi cal5d> ye> supple;t>ies >e
  requir$ only = ^? 9ve/ors :o pur*as$
  an 9ve/;t 9 ! tax %elt] af ,augu/ #ca1
  #aihi4

#ad4 ,! ,9=m,n ,return is 6be fil$ )!
  ,m9i/]
  7a7 on or 2f ! la/ "d ( ,febru>y immly
    foll[+ ! cal5d> ye> 9 : an acquisi;n
    ( an 9t]e/ 9 a tax %elt] o3urs1 or
  7b7 if ! busi;s or activ;y is 4cont9u$
    dur+ ! ye> ! return is 6be fil$ )9
    #cj "ds (! "d (! 4cont9u.e (! busi;s
    or activ;y4                      #aj
                 #hi-d               b#d
#ae4 ,a p]son requir$ 6make an ,9=m,n
  ,return % =w>d 6! appropriate 9ve/or
  copies #b & #c (! supple;t>ies on or
  2f ! dates 9dicat$ 9 #ad abv4

               ,p5alties
    
#af4 ,p>agraph #afb7#g77a7 (! ,act
  provides t e p]son :o fails 6make an
  ,9=m,n ,return1 z & :5 requir$ 0! ,act
  or 0a regul,n1 is lia# 6a p5alty4
  ,! p5alty is ! grt] (3
  7a7 4#ajj1 &
  7b7 4#be p] "d t ! failure 3t9ues
    7maximum 4#bejj74
  
     ,"p ,,iii--,fil+ ,require;ts =
                ,9ve/ors
    
#ag4 ,subsec;n #bcg.a7#f7 (! ,act
  provides t no am.t may 2 claim$ or
  deduct$ 0a p]son 9 respect ( an 9t]e/
  9 a tax %elt] un.s ! p]son provides !
  id5tific,n numb] =! tax %elt]4     #aa
                 #hi-d               c#d
  ,! 9ve/or may use ! au?oriz$ =m1
  ,/ate;t ( ,tax ,%elt] ,loss or
--------------------------------------#e
  ,deduc;n--,t#ejjd1 availa# at all
  ,4trict ,tax,n (fices ( ,rev5ue
  ,canada1 ,tax,n 6provide ! tax %elt]
  id5tific,n numb] 6! ,m9i/] 09clud+ ?
  =m 9 ! relevant 9come tax return4 ,!
  9ve/or %d al 9clude a copy (
  ,supple;t>y ,t#ejjc 9 ! f/ ye> (a
  claim4
#ah4 ,! 9ve/or m/ provide docu;t,n t
  sub/antiates ! claim4 ,bo? ! au?oriz$
  =m &! relevant docu;t,n >e 6be 9clud$
  9 ! 9ve/or's 9come tax return =! ye> 9
  : ! claim is made4 ,note3 ,z 9dicat$ 9
  p>agraph #i abv1 ! id5tific,n numb]
  assign$ 6! tax %elt] 0,rev5ue ,canada1
  ,tax,n is = adm9i/rative purposes only
  & does n 9 any way 3firm ! valid;y (a
  claim = any tax b5efits associat$ )!
  tax %elt]4

                                     #ab
             ,"p ,,iv--,o!r          a#e
    
#ai4 ,subsec;n #bcg.a7#h7 (! ,act p]mits
  ! ,m9i/] 6v]ify or obta9 any 9=m,n 9
  respect (! tax %elt] at any "t af a
  promot] has appli$ =a tax %elt]
  id5tific,n numb]4 ,rev5ue ,canada1
  ,tax,n may audit ! tax %elt]'s books &
  records or ! books & records ma9ta9$
  0a taxpay] =! %elt] at any "t af !
  applic,n = an id5tific,n numb] has be5
  made4












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