Reliance on Advanced Tax Rulings

This is an Advanced Tax Ruling: http://www.cra-arc.gc.ca/menu/ATRA-e.html

If one of my clients received a favourable Advanced Income Tax ruling (ATR), to what extent can other clients of my law firm rely on that favorable ATR if they wish to implement similar policies?

Other clients can rely on an Advanced Income Tax ruling (ATR) to some extent, however, these clients should not regard an ATR to be written in stone. In practice, the CRA binds itself to the decisions of an ATR,[1] even though ATR’s are not legally binding.[2] ATR’s apply only to the identified taxpayer in the ruling,[3] but other clients could comfortably rely on an ATR if the facts of there proposed transaction are identical to the previous ruling (assuming the relevant ITA provisions, case law interpreting those provisions or CRA interpretations have not changed).[4] It should be noted that the CRA does not have to assess people the same way (even with similar transactions) because the CRA is not bound by their past mistakes, but have to assess each individual correctly on a separate basis.[5] Thus, the function of an ATR is not to provide legal advice, but to promote voluntary compliance, uniformity and self-assessment.[6]

[1] M.N.R., Information Circular 70-6R5, “Advance Income Tax Rulings” (17 May 2002), at para. 6.
[2] David Williamson and Tim Bryant, “The Income Tax Ruling Process: Dispelling the Mystery”, 1 at 4.
[3] Supra., note 1 at para. 9.
[4] Supra., note 1 at para. 26.
[5] Hawkes v Canada [1996] F.C.J No. 1694, at para. 8-9.
[6] Supra., note 1 at para. 3.