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.
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File #: 7-922562 |
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Prepared by: Bruce Rankin |
Date: September 2, 1992
REVENUE CANADA FORESTRY TAX CONFERENCE
PRESENTATION BY RULINGS
FORESTRY POLLUTION CONTROL EQUIPMENT
During the last twelve months we have observed a marked increase in the number of queries concerning the qualifications necessary in order for equipment to qualify for the accelerated capital cost allowance permitted by Class 24 applicable to water pollution and Class 27 applicable to air pollution.
As environmental concerns are taking an increasingly visible profile, it is timely to review the complex requirements applicable to the two pollution control CCA classes. As a result of the requirements, the applicability of Class 24 and Class 27 is quite narrow. There also appears to be a commonly held misconception among taxpayers and their representatives that once a certificate is issued by the Minister of Environment the property is eligible for inclusion in the applicable class. Thus, there is some pressure for equipment to be permitted to be included in one of the two classes in order for the owner to have access to accelerated CCA claims for expenditures related to pollution equipment.
Our review of the conditions that must be met before the property is eligible for inclusion in Class 24 or 27 confirm that all requirements are questions of the facts and circumstances that are relevant to the particular equipment. As such, we feel that the auditor having access to these facts is in the best position to evaluate the merit of the claim.
The qualifications for Class 24 and 27 are summarized in the two attached schedules. We note that the specific requirements for both classes relate not only to the primary use of the equipment but also test certain characteristics of the property, as well as its ownership and the ownership of the site at which the equipment is used.
In reviewing the class qualifications we note that the certificate issued by the Minister of Environment satisfies only one of the requirements. The certificate does not mean that all of the necessary qualifications have been met.
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, 1992
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, 1992
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