Sanivac – Cour du Québec finds that trucks used both for transporting and decanting dirty oil were M&P equipment

A company used somewhat modified trucks to collect dirty oils from customers. On the trucks’ return to the company premises, they would sit there for 12 hours in order to permit the oils to settle out in their holding tanks – before the now, somewhat separated, oils were pumped out for further processing at the company’s premises with a view to their sale.

Guimond JCQ found that, as this settling-out process (without oenophilic pretention, described in French as “décantation”) was part and parcel of the process for purifying the oils and was more significant than the use of the trucks in transporting the oil, the trucks qualified as processing equipment under the Quebec equivalent of ITA s. 127(9) – qualified property – (c)(i). The same concepts also are relevant for distinguishing CCA classes referencing manufacturing and processing – and, in fact, Guimond JCQ quoted the Démolition A.M. case extensively.

Neal Armstrong. Summary of Environnement Sanivac Inc. v. ARQ, 2016 QCCQ 9461 under s. 127(9) – qualified property – (c)(i).