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.
ADJUSTED COST BASE
QUESTION 29
The definition "Adjusted Cost Base" ("ACB") is found in paragraph 54(a) in Subdivision c of Division B of the Income Tax Act. The definition, however, does not clearly stipulate that it applies only to capital property, though this could be inferred by construction. Does Revenue Canada believe that the concept of ACB can ever be relevant for property that is not capital property, e.g., for inventory or Canadian resource properties?
DEPARTMENT'S POSITION
In our view, the above-mentioned definition does not preclude property other than capital property from having an ACB. However, it is also our view, that this does not mean that the ACB of such property is necessarily "relevant" for determination of the income tax consequences of transactions involving that property. In particular, it is our view that transactions involving inventory or Canadian resource property are subject to specific provisions of the Income Tax Act which are not governed by the concept of ACB.
A.A. Cameron June 8, 1993 931516 CPTS June 17, 1993
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