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.
Principal Issues:
Whether any property described in 1102(1)(e)(i) or (ii) is a depreciable property where the property was jointly created by a Canadian (as defined in 1104(10)(a)) and a non-Canadian artist?
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
Requirements of the legislation. See issue sheet.
5-942004
XXXXXXXXXX Robert Gagnon
Attention: XXXXXXXXXX
October 12, 1994
Dear Sirs:
Re: Canadian's Artwork
This is in reply to your letter of July 25, 1994 wherein you requested a technical interpretation concerning paragraph 1102(1)(e) of the Income Tax Regulations ("Regulations").
It is the Department's view that any property described in subparagraph 1102(1)(e)(i) or (ii) of the Regulations is not a depreciable property where the property was jointly created by a Canadian (within the meaning assigned by paragraph 1104(10)(a) of the Regulations) and a non-Canadian artist.
The foregoing opinion is not a ruling and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, is not binding on the Department.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch
ISSUE SHEET - 5-942004
Reg. 1102(1)(e) provides that any property described in 1102(1)(e)(i) or (ii) must be created by a Canadian. It does not provide that part of such property must be created by a Canadian. Where the legislator wants that a disposition applies in respect of any part of a property or something else, it is specified in the Act. See for instance:
- 1100(1.13), 1100(1.3), class 1 and 3 "building..., or part thereof"
- class 8 (i) "land or any part thereof"
- 22(1) "part of his ordinary business"
- 20(1)(a) "such part"
- 23(1) "after disposing of or ceasing to carry on a business or part of a business"
For the purposes of 60(j.1)(i.v), the Department's position is that the acquisition of part of a business does not qualify (see 5-7945 and ESC7336).
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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