8 September 1994 GST/HST Interpretation 11745-5(glr)[2] - Definition of Automobile

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Attached is a copy of a memorandum dated October 19, 1993 (File 11745-5 XXXXX), written by Mr. XXXXX Enquiries Officer, XXXXX District Excise/GST Office, to Mr. XXXXX District Excise/GST Office. The memorandum concerns the definition of the word "automobile" for purposes of the transitional provisions contained in paragraph 340(3)(a) of the Excise Tax Act (Act) and if this definition could include pick-up trucks and vans.

In his memorandum, Mr. XXXXX states that the Act does not provide a definition of "automobile". Mr. XXXXX goes on to provide the definition of "automobile" contained in the Income Tax Act. However, Mr. XXXXX did not advise Mr. XXXXX of the guidelines previously published, which were contained in correspondence as well as the Questions and Answers Database, dealing with the Department's interpretation of the word "automobile" for purposes of the transitional (i.e., grandfathering) provisions contained in subsection 340(3).

These guidelines state that although a review of various dictionary definitions would indicate that the word "automobile" is meant to have a restrictive meaning (e.g., a motor car or a passenger vehicle designed for operation on ordinary roads and typically having four wheels and a gasoline or diesel internal-combustion engine), the Department interprets the word more broadly. For purposes of the grandfathering provisions in subsection 340(3), the word "automobile" encompasses certain other motor vehicles which are often acquired for personal use but may be used for business purposes. Examples of other motor vehicles which qualify as "automobiles" include vans, pick-up trucks and station wagons. The status of the lessee or the use to which the vehicle is put are not relevant. A taxicab or a hearse is also regarded as an "automobile".

However, the interpretation of the word "automobile" does not include trucks (other than pick-up trucks), buses, motorcycles, motor homes, trailers or any off-highway use vehicles.

If you have any questions, please contact Mr. Garry Ryhorchuk of my staff at (613) 952-6743.

H.L. Jones
Director
General Tax Policy
Excise/GST
Policy and Legislation

Att.