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.
MINISTER/DM'S OFFICE Y.S. 93-3046T ADM'S OFFICE CENTRAL RECORDS RETURN TO RULINGS, ROOM 303, MET. BLDG.
XXXXXXXXXX
Dear XXXXXXXXXX
The Honourable Otto Jelinek, Minister of National Revenue, has asked me to respond to your letter of March 18, 1993, which was forwarded by the Honourable Don Mazankowski, Minister of Finance, on May 13, 1993, concerning small business investment tax credits (the "SBITC") on farm equipment purchases.
In your letter you expressed concern with respect to the administrative treatment under the SBITC provisions of farm machinery and equipment that has been the subject of regular demonstrations or used for rentals.
The Department's view on "demonstrators" and demonstration is set out in paragraph 18 of the enclosed Interpretation Bulletin IT-331R and would be equally applicable to the SBITC. Regrettably, the wording in the SBITC legislation does not allow a similar interpretation to extend to equipment used for rental. It is our view that equipment used to earn rental revenue, regardless of the length of the rental arrangement, has been "used for a purpose", namely to earn rental revenue. Consequently, such equipment cannot qualify for the SBITC if it is subsequently sold to a farmer.
I regret that my reply cannot be more favourable. Nevertheless, I trust that my comments have explained the Department's position on this matter.
Yours sincerely,
Pierre Gravelle, Q.C.
c.c. Mr. David A. Dodge Deputy Minister Department of Finance
June 15, 1993
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, 1993
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, 1993
Email this Content