Which of the following statements with respect to tax reference materials is correct?
A)Income Tax Folios are a legislative source of guidance.
B)Income Tax Regulations are gradually being replaced by Income Tax Folios.
C)Interpretation Bulletins are gradually being replaced by Information Circulars.
D)The Income Tax Act is the most important source of information for dealing with matters related to the federal income tax.

Question

Quizplus · Accepted Answer

The Income Tax Act is the most important source of information for dealing with matters related to the federal income tax. While Income Tax Folios provide guidance on how the Canada Revenue Agency (CRA) interprets the tax law, they are not legislative sources of guidance. Income Tax Regulations and Interpretation Bulletins are still relevant and considered sources of guidance by the CRA, though they may be supplemented or replaced by Income Tax Folios and Information Circulars, respectively.

Which of the Following Statements with Respect to Tax Reference