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 pre-construction design activities considered to be "construction".
Position:
Not considered to be "construction".
Reasons:
"Construction" refers to those activities normally associated with the on-site fabrication and erection of buildings, bridges and other structures which are intended to be permanently affixed to the land on which they are built.
960020
XXXXXXXXXX Wm. P. Guglich
April 1, 1996
Dear Sirs:
Re: Class 34 - Transitional Relief
Your letter of December 31, 1995, to Don Skinner of Natural Resources Canada, has been referred to our Department for a reply.
It is your view that where a taxpayer has started with the design of a wood waste co-generation plant before February 22, 1994 the transitional rules for class 34 would apply as design is an integral part of the construction process.
Reference is made in draft paragraph (j) of Class 34 to property that was under construction before February 24, 1994. The term "construction", in our view, refers to those activities normally associated with the on-site fabrication and erection of buildings, roads, bridges, etc., which are intended to be permanently affixed to the land on which they are built. The term does not apply to pre-construction design activities and its our view that design activities would not be considered "property under construction". Consequently, the transitional rules contained in draft paragraph (j) of Class 34 would not apply where only pre-construction design activities have been undertaken.
We trust our comments will be of assistance to you.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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, 1996
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, 1996