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

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,def]r$ ,ca% ,pur*ase ,tickets ,issu$
  = ,gra9
,numb]3 ,,it-#ahd;,r
,date3 ,octob] #ah1 #aigh
,ref];e3 ,subsec;n #gf7#d7 7al sec;n #aa
  & subsec;ns #bh7#a7 & #bdi7#a77

  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#ahd1 dat$ ,novemb] #d1
#aigd4 ,curr5t revi.ns >e designat$
0v]tical l9es4

#a4 ,subsec;n #gf7#d7 provides =!
  def]ral ( 9come ": ca% pur*ase tickets
  & o!r =ms ( settle;t prescrib$
  pursuant 6! ,canada ,gra9 ,act or 0!
  ,m9i/] ( ,n,nal ,rev5ue >e issu$ 9
  respect ( gra9 deliv]$ 6a prim>y or a
  process elevator4 ,x applies1 =     #a
              ,,it-#ahd;,r           a#a
  #aigc & subsequ5t tax,n ye>s1
  6taxpay]s c>ry+ on a f>m+ busi;s :o
  elect "u subsec;n #bh7#a7 6use ! 8ca%
  me?od0 ( report+ 9come4 ,=! #aigc
  tax,n ye> x applies only 9 respect (
  ca% pur*ase tickets = gra9 deliv]$ 6a
  prim>y elevator4
#b4 ,subsec;n #gf7#d7 al applies 6f>m]s
  on ! 8ca%0 basis ^: *ief s\rce ( 9come
  =a tax,n ye> is nei f>m+ nor a -b9,n (
  f>m+ & "s o!r s\rce ( 9come4 ,fur!r1 x
  is ! ,de"p;t's practice 6p]mit a l&"l
  :o l1ses f>m prop]ty on a %>e crop
  basis 6def] ! report+ ( t por;n (!
  r5tal 9come t relates 6gra9 deliv]$
  ag/ ca% pur*ase tickets z m5;n$ 9
  subsec;ns #gf7#d7 & 7#e74 ,? posi;n
  does n imply t ! l&"l is 9 ! busi;s (
  f>m+4
#c4 ,! g5]al rule 3ta9$ 9 subsec;n
  #gf7#a7 requires a 8ca%0 basis taxpay]
  :o rcvs a secur;y 9 satisfac;n ( an
  9come debt 69clude ! value (! secur;y
  9 ! -put,n ( 9come =! tax,n ye> 9   #b
              ,,it-#ahd;,r           b#a
  : x is rcvd4 ,h["e1 subsec;n #gf7#d7
  provides an excep;n 6! g5]al rule ": !
  taxpay] rcvs a ca% pur*ase ticket "u !
  3di;ns /at$ 9 #d 2l4 ,9 ? situ,n1
  subsec;n #gf7#d7 requires t ! taxpay]
  exclude ! am.t /at$ on ! ticket f !
  9come (! tax,n ye> 9 : ! gra9 0
  deliv]$ & 9clude a l am.t 9 ! 9come (!
  immly foll[+ tax,n ye>4
--------------------------------------#b
#d4 ,subsec;n #gf7#d7 applies ":
  7a7 ! ticket issu$ 0! prim>y or
    process elevator is =! sale ( gra9
    7:1t1 oats1 b>ley1 rye1 flaxse$ &
    rapese$7 produc$ 9 designat$ >1s
    7see #aj 2l =! def9i;n ( 8designat$
    >ea07 &
  7b7 ! hold] (! ticket is 5titl$ 6pay;t
    0! elevator op]ator (! am.t /at$
    "!91 )\t 9t]e/1 at a date t is af !
    5d (! tax,n ye> 9 : ! gra9 is
    deliv]$4
#e4 ,! ,de"p;t's 9t]pret,n (! t]m
  8deliv]$0 9 subsec;n #gf7#d7 is t   #c
              ,,it-#ahd;,r           a#b
  x m1ns 8deliv]y = sale04 ,"!=e1
  subsec;n #gf7#d7 2comes applica# at !
  po9t 9 "t :5 a f>m] ex*anges a /orage
  ticket =a ca% pur*ase ticket r ?an :5
  a /orage ticket is rcvd4 ,= example1
  if a f>m] rcvd a /orage ticket ^u !
  deliv]y ( gra9 6a prim>y elevator & !n
  9 ! foll[+ fiscal p]iod ex*ang$ !
  /orage ticket =a ca% pur*ase ticket t
  0 redeema# 9 ! imm subsequ5t fiscal
  p]iod1 ! am.t /at$ 9 ! ticket %d 2
  9clud$ 9 9come =! imm subsequ5t fiscal
  p]iod4
#f4 ,am.ts br"\ 969come "u subsec;n
  #gf7#d7 >e 3sid]$ 9come f a f>m+
  busi;s &1 z a result1 ! tax,n ye>
  ref]r$ 6in subsec;n #gf7#d7 is !
  fiscal p]iod (! f>m+ busi;s4 ,subsec;n
  #gf7#d7 applies 6br+ an am.t 969come 9
  ! immly subsequ5t fiscal ye> if ! ca%
  pur*ase ticket is paya# 9 a fiscal ye>
  t is subsequ5t 6! fiscal ye> 9 : !
  gra9 is deliv]$4 ,if ! ca% pur*ase
  ticket is rcvd 0a "pn]%ip t is 9    #d
              ,,it-#ahd;,r           b#b
  ! busi;s ( f>m+ x is ! fiscal p]iod (!
  "pn]%ip t is relevant4
#g4 ,a taxpay] :o pl$ges a ca% pur*ase
  ticket z secur;y ag/ a p]sonal or
  busi;s 9debt$;s or sells x 2f matur;y
  is n d5i$ any "r 6def] ! report+ (!
  proce$s (! ticket4 ,on 4posi;n (a ca%
  pur*ase ticket = less ?an face value1
  ! resultant 4c.t is tr1t$ z a sep>ate
  transac;n 9 ! taxpay]'s fiscal p]iod 9
  : ! 4c.t is 9curr$4 ,:e!r ! 4c.t is
  deducti# f 9come is det]m9$ 9 a3ord.e
  )! facts (! "picul> situ,n 7see
  ,,it-#aad74
#h4 ,": a f>m] rcvs a ca% pur*ase ticket
  t qualifies = def]ral "u subsec;n
  #gf7#d7 & uses x 9 ! fiscal p]iod t !
  gra9 is deliv]$ 6pay all[a# exp5ses1
  he or %e is 5titl$ 6claim ! exp5se 9 t
  fiscal p]iod4 ,9 s* a situ,n subsec;n
  #gf7#d7 w / 2 applica# &! f>m] w n 2
  requir$ 69clude ! pur*ase price /at$ 9
  ! ticket 9 9come until ! immly foll[+
  ye>4                                #e
              ,,it-#ahd;,r           c#b
#i4 ,9 situ,ns ": a f>m] sells gra9 &
  rcvs a ca% pur*ase ticket t is subject
  6a levy "u ! ,we/]n ,gra9 ,/abiliz,n
  ,act1 ! ,de"p;t's posi;n
--------------------------------------#c
  is t ! levy is 3sid]$ 6h be5 pd at !
  "t ( receipt (! ca% pur*ase ticket4 ,z
  a result1 ! levy is 3sid]$ 6be
  deducti# 0a f>m] calculat+ 9come us+ !
  8ca% me?od0 9 ! ye> ! deliv]y = sale
  takes place r ?an :5 ! ticket is ca%$4
#aj4 ,subsec;n #gf7#e7 ref]s 6! foll[+
  def9i;ns 3ta9$ 9 ! ,canadian ,:1t
  ,bo>d ,act &! ,canada ,gra9 ,act : >e
  relevant = 9t]pret+ subsec;n #gf7#d7
  (! ,act
  7a7 8,ca% ,pur*ase ,ticket0 m1ns a
    docu;t 9 prescrib$ =m issu$ 9
    respect ( gra9 deliv]$ 6a prim>y
    elevator z evid;e (! pur*ase (! gra9
    0! op]ator (! elevator & 5titl+ !
    hold] (! docu;t 6pay;t 0! op]ator (!
    pur*ase price /at$ 9 ! docu;t4
                                      #f
              ,,it-#ahd;,r           a#c
  7b7 8,op]ator0 m1ns1 9 respect ( an
    elevator1 ! p]son 9 posses.n (!
    premises 3/itut+ ! elevator1 ei z
    [n] or lessee1 or z 2+ 5titl$ "u a
    3tract )! [n] or lessee 6op]ate !
    elevator = 8 [n b5efit & advantage4
  7c7 8,prim>y ,elevator0 m1ns an
    elevator ! pr9cipal use ( : is !
    rcvg ( gra9 directly f produc]s = ei
    or bo? /orage & =w>d+4
  7d7 8,process elevator0 m1ns an
    elevator (! pr9cipal use ( : is !
    rcvg & /or+ ( gra9 = direct
    manufacture or process+ 96o!r
    products2
  7e7 8,designate ,>ea0 m1ns t >ea
    -pris$ 0! prov9ces ( ,manitoba1
    ,saskat*ewan & ,alb]ta1 & ^? "ps (!
    ,prov9ce ( ,briti% ,columbia "kn z !
    ,p1ce ,riv] ,4trict &! ,cre/on-
    ,wynndel >1s1 & s* o!r "ps (!
    ,prov9ce ( ,briti% ,columbia & s*
    "ps (! ,prov9ce ( ,ont>io ly+ 9 !
                                      #g
              ,,it-#ahd;,r           b#c
    ,we/]n ,divi.n z ! ,bo>d may f "t
    6"t designate4
  
       ,volunt>y ,pay;t ,def]rals
    
#aa4 ,": gra9 is produc$ &! require;ts (
  subsec;n #gf7#d7 d n apply 7see #d
  abv71 s* z ": gra9 is produc$ 9 a non-
  designat$ >ea 7t is1 an >ea \tside !
  8designat$ >ea0 describ$ at #aj7e7
  abv71 a f>m] may sell gra9 9 "o fiscal
  p]iod & rcv pay;t 9 ! foll[+ fiscal
  p]iod4 ,": ? o3urs & nei ( subsec;ns
  #gf7#a7 nor #gf7#b7 is applica# 7see
  ,,it-#gg71 ! f>m]1 :o has elect$
  6-pute 9come 9 a3ord.e )! 8ca% me?od01
  is 6report ! am.t (! sale 9 ! fiscal
  p]iod 9 : ! am.t is rcvd1 ev5 ?\< ?
  am.t cd h be5 rcvd 9 ! prec$+ p]iod _h
  ! f>m] *os5 6reque/ x4 ,subsec;n
  #bh7#a7 wd n apply 9 ! fiscal p]iod 9
  : ! gra9 0 sold z no pay;t 0 rcvd 9 t
  p]iod4
                                      #h