17 August 2001 Internal T.I. 2001-0083827 - HOT AIR BALLOON

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Is a hot air balloon an "aircraft" for income tax purposes?

Position:

Yes

Reasons:

IT-522R / Dictionary definition of an "aircraft."

		August 17, 2001

	Douglas Wood	HEADQUARTERS
	Excise & GST/HST Rulings	Randy Hewlett, B.Comm.
	General Operations Unit	613-957-8973

		2001-008382

Technical Interpretation Request - Hot Air Balloon

We are writing in response to your request of May 11, 2001, wherein you asked for our opinion on whether a hot air balloon is an aircraft for purposes of the Income Tax Act (the Act).

The term "aircraft" is not defined in the Act. As indicated in your request, paragraph 22 of Interpretation Bulletin IT-522R, Vehicle, Travel and Sales Expenses of Employees, does provide a definition of aircraft as "any machine used or designed for travelling in the air but does not include a machine designed to derive support in the atmosphere from reactions against the earth's surface of air expelled from the machine (for example, a hovercraft)." Merriam-Webster's Collegiate Dictionary (Tenth Edition) defines aircraft as "a vehicle (as an airplane or balloon) for travelling through the air." The Concise Oxford Dictionary of Current English (Eight Edition) defines aircraft as "a machine capable of flight, especially an aeroplane or helicopter."

Based upon the above, it is our view that a hot air balloon will be considered an aircraft for purposes of the Act.

We trust our comments will be of assistance to you.

Terry Young, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch