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.
XXXXXXXXXX 5-933442
Attention: XXXXXXXXXX
March 17, 1994
Dear Sirs:
Re: Investment Tax Credit - Qualified Small Business Property
This is in reply to your letter dated November 22, 1993 wherein you requested our opinion as to whether a building that is a silo, a building or other structure designed for the purpose of preserving ensilage on a farm, a building or other structure used principally for the purpose of storing fresh fruits and vegetables and a greenhouse are "qualified farm property" for purposes of the investment tax credit ("ITC"), and more particularly, if these properties are eligible for the 10% ITC for "qualified small-business property".
The expression "qualified farm property" as mentioned in your letter is not a defined term in the Income Tax Act (the "Act") for the purposes of the ITC. We are assuming that you were referring to the expression "qualified property". However, since the above properties are "prescribed buildings" under subsection 4600(1) of the Income Tax Regulations (the "Regulations") for the purposes of the definition "qualified property" in subsection 127(9) of the Act, they cannot be "prescribed machinery and equipment" for the same purposes (see the preamble to subsection 4600(2) of the Regulations). Thus, it is our opinion that these properties cannot give rise to the 10% ITC for "qualified small-business property".
We trust these comments will be of assistance to you.
Yours truly,
for Director
Manufacturing Industries,
Partnerships and Trusts Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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