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.
SITE RESTORATION
QUESTION 42
Where a taxpayer incurs site restoration costs to return land used as a service station site to its original condition, what is Revenue Canada's view of the income tax treatment of these expenditures?
DEPARTMENT'S POSITION
The Department has adopted the position that reclamation costs are recognized for the purposes of the Income Tax Act in the year they are incurred. This view is supported by the Federal Court of Appeal decision for Her Majesty The Queen v. Burnco Industries Ltd. et al., 84 DTC 6349, and the Federal Court of Appeal decision for Her Majesty The Queen v. Nomad Sand and Gravel Limited, 91 DTC 5032.
While the income tax treatment of an incurred expense is substantially a question of the facts and circumstances that are relevant to the particular expense, the matter of reclamation expenses is being reviewed, thus any comment on the treatment of incurred reclamation expenses would be inappropriate at this time.
CPTS June 17, 1993
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