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 a trailer or tanker is included in Class 16(g)?
Position TAKEN:
No
Reasons FOR POSITION TAKEN:
Not mentioned in Class 16(g).
5-950442
XXXXXXXXXX Adèle St-Amour
Attention: XXXXXXXXXX
June 22, 1995
Dear Sirs:
Subject: Classification of truck, tractor and trailer Income Tax Regulations (the "Regulations)
Schedule II - Class 10(a), 10(e) and 16(g)
This is in response to your letter of February 11, 1995 requesting whether a trailer or a tanker is included in Class 16(g) of the Regulations. We apologize for the delay in responding to your letter.
Class 16(g) of Schedule II of the Regulations applies to certain freight hauling trucks and tractors (gross vehicle weight rating in excess of 11,788 kg. or 26,000 lbs) acquired after December 6, 1991 so that they would qualify for the 40% rate rather than the 30% rate under class 10. To qualify a truck or tractor must be designed to haul freight and be primarily used by the taxpayer or a person with whom the taxpayer does not deal at arm's length in a business that includes hauling freight. Class 16(g) does not include a trailer or tanker; these assets are included in Class 10(e).
As explained in paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, the above comments do not constitute an advance income tax ruling and are not binding on the Department. We trust the above comments will be of assistance to you. If you have any questions do not hesitated to contact us.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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