BACKGROUND ‐ Cultural Property Export and Import Act – 1977 ("CP Act")

PURPOSE – Establishes rules for the export of culturally important objects from Canada

  • Control list of objects or classes of objects regardless of their places of origin, the export of which is deemed necessary to control in order to preserve the national heritage in Canada
  • Classes of items designated for the Control List:
  • historical documents, photographs, films, sound recordings, mineral specimens, fossils, archaeological artifacts, ethnographic items, military objects, applied artistic and decorative items, fine art, scientific or technological objects, textual and graphic records of all kinds, maps, iconographic items, musical instruments.
  • At least 50 years old and creator not alive – 35 years in Canada
  • Gives Canadian Institutions two‐six months raise funds to buy the item before an export permit is issued
  • Government provides some funds
  • Application for export permit is made to Canada Border Services Agency. Expert examiner decides if object is subject to control. Appeal to Canadian Cultural Property Export Review Board
  • S.29(3)(b) and (c) of the CP Act
  • In reviewing an application for an export permit, the Review Board shall determine whether the object in respect of which the application was made:
    • (b) is of outstanding significance by reason of its close association with Canadian history or national life, its aesthetic qualities, or its value in the study of the arts or sciences; and
    • (c) is of such a degree of national importance that its loss to Canada would significantly diminish the national heritage.
  • EFFECT OF CREDIT – ITA s.39(1)(a)(i.1)
  • A taxpayer's capital gain excludes an object that the Canadian Cultural Property Export Review Board has determined meets the criteria set out in paragraphs 29(3)(b) and (c) of the CP Act if
    • (A) the disposition is to a designated institution or a public authority in Canada, or
    • (B) the disposition is made by the taxpayer's estate to such an institution
  • Section 110.1(1)(c) contains a similar provision for corporations

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