Date: 20010213
Docket: A-636-99
2001 FCA 18
CORAM: DESJARDINS J.A.
DÉCARY J.A.
LÉTOURNEAU J.A.
BETWEEN:
HER MAJESTY THE QUEEN
Appellant
AND:
LEBRAS FARMS LTD.
Respondent
Heard at Saskatoon, Saskatchewan, Tuesday, February 13, 2001
Judgment delivered from the Bench at Saskatoon, Saskatchewan
Tuesday, February 13, 2001
REASONS FOR JUDGMENT OF THE COURT BY: LÉTOURNEAU J.A.
Date: 20010213
Docket: A-636-99
2001 FCA 18
CORAM: DESJARDINS J.A.
DÉCARY J.A.
LÉTOURNEAU J.A.
BETWEEN:
HER MAJESTY THE QUEEN
Appellant
AND:
LEBRAS FARMS LTD.
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Saskatoon, Saskatchewan
on Tuesday, February 13, 2001)
LÉTOURNEAU J.A.
We are satisfied on the facts as found that Beaubier J.T.C.C. rightly concluded that the respondent had acquired the combine and the header in issue in these proceedings on December 22, 1993 before anyone used them and, therefore, that the respondent was entitled to claim the Investment Tax Credit for the taxation year 1994. We do not need to determine whether the display of a piece of farming equipment in shows devoted to promote the sale of that piece constitute a use before acquisition by the taxpayer within the terms of subsection 127(9) of the Income Tax Act.
As for the capital cost allowance deduction for the 1994 taxation year permitted by the learned Tax Court judge, the parties agreed that the reference should have been to the 1995 taxation year as the respondent's 1994 fiscal year ended on July 31, 1994 and both the combine and the header were not capable of performing the functions for which they were acquired before the 1995 taxation year starting August 1, 1994. To the limited extent of correcting that error, we will allow the appeal. However, in view of the measure of success obtained by the respondent, it will be entitled to its costs.
"Gilles Létourneau"
J.A.
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