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:
Appropriate Class for underground Gasoline and Diesel fuel oil storage tanks at retail service stations.
Position:
Class 6(e) which refers to an oil or water storage tank.
Reasons:
Both gasoline and diesel fuel oil are considered to be oil.
962363
XXXXXXXXXX A.M. Brake
Attention: XXXXXXXXXX
August 9, 1996
Dear Sirs:
Re: CCA Class, Gasoline and Diesel Fuel Tanks
This is in reply to your letter of July 8, 1996, requesting clarification of the appropriate CCA Class for costs in respect of the purchase and installation of underground fuel tanks for a retail service station. You state that oil and water tanks would be categorized as Class 6 (10 % on declining balance) but that Class 8 (20 % on declining balance) might be more appropriate for tanks used to store automotive fuel for resale.
We assume with respect to automotive fuel you are actually referring to gasoline and diesel fuel and in this regard it is our opinion that underground gasoline and diesel fuel storage tanks are required to be included in Class 6(e) of Schedule B of the Income Tax Regulations.
While the words in Class 6(e) refer to "an oil or water storage tank", in our view, gasoline and diesel fuel storage tanks also fall properly within the intent of those words inasmuch as both gasoline and diesel fuel oil are derivatives of petroleum which, by definition, is a hydrocarbon oil.
We trust our comments will be of assistance to you.
Yours truly,
R. Albert
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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