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 natural gas which is compressed to produce heat would be considered "fuel" for purposes of class 43.1?
Position:
NO.
Reasons:
To be considered "Fuel" the gas must be combusted.
NOTE TO FILE
RE: MEANING OF "FUEL" - CLASS 43.1
ISSUE:
Kerry Harnish of Finance in a telephone call requested our views as to whether natural gas which is compressed to produce heat would be considered a "fuel" or, whether it must be combusted to be considered a "fuel"?
OUR VIEWS:
The word fuel is not defined in the Act. However, this issue was considered in Simplot Chemical Co. v. Manitoba (1987), 47 Man. R. 2(d) 167. The court held that to be considered "fuel" the gas must be combusted. Gas which is compressed to produce heat would not be considered to be "fuel". This is consistent with the dictionary definition of the word in the context of Class 43.1.
The above is also consistent with Finance's view of the meaning of the word "fuel" in the context of class 43.1.
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
952880
96\03\05
Wm. P. Guglich
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