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.
Principal Issues: Is the administrative position in paragraph 24 of cancelled IT-331R still valid?
Position: No
Reasons: The TCC decision in Pêcheries and the inherent difficulties in consistently applying this administrative position.
July 11, 2013
Mike Warren, Manager Headquarters
Small and Medium Enterprises Directorate IT Rulings
Directorate
112 Kent Street Sandro D'Angelo
Ottawa ON K1A 0L5 (613) 410-9703
Attention: Mike Warren
2013-049009
Qualified Property Used Equipment and "Major Renovations"
As previously discussed (Warren/Cooke), the validity of the CRA's administrative position described in paragraph 24 of cancelled IT-331R, "Investment Tax Credit" was recently commented on by the Tax Court of Canada in Pêcheries Yvon Savage Inc. v. The Queen, 2011 TCC 477. This administrative position effectively allowed used equipment to be treated as unused where there were "major renovations".
Given the court decision and the inherent difficulties in consistently applying this administrative position, this administrative position should no longer be applied.
If you would like to discuss this matter further, please contact Sandro D'Angelo at 613-410-9703.
Sincerely,
Eliza Erskine
Acting Director
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2013
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2013
Email this Content