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:
def'n of amusement park in reg 1104(12), specifically can it be indoors, must it include all three activities listed in the regulation and whether a place which provides horseback riding, tennis, mini-golf, golf or a fishing pond qualifies as a amusement park
Position:
usually outdoors but there are incidences of indoor amusement parks, the phrase "amusements, rides and audio-visual attractions" is to be understood accd'ng to the principle of noscitur a sociis and no, none of the activities listed in letter would qualify as an amusement park in and of themsevles
Reasons:
question of fact to be determined with reference to the ordinary meaning of the term amusement park
A. Humenuk
XXXXXXXXXX 972234
Attention: XXXXXXXXXX
November 17, 1997
Dear Sirs:
Re: Amusement Parks
We are replying to your letter of August 13, 1997, in which you ask for clarification of the definition of amusement park found in subsection 1104(12) of the Income Tax Regulations (the "Regulations").
In particular, you have asked us to address the issue of:
-whether an amusement park must be situated outdoors, as opposed to indoors,
-whether an amusement park must provide all three forms of amusement listed in subsection 1104(12) of the Regulations, or whether it is sufficient to have only one or two of the types of activities therein listed permanently situated in the park, and
-whether property used in the operation of an outdoor horseback riding stable, an outdoor tennis court, a mini-golf facility, a golf course or a fishing pond would qualify as a Class 37 asset.
The determination of whether a particular place qualifies as an amusement park is a question of fact which can only be determined after a review of all of the relevant facts. If you require assistance in determining the appropriate class for assets currently used in a particular business, you should contact your local tax services office. Nevertheless, we offer the following general comments which may be of assistance to you.
Although an amusement park is usually found outdoors, in our view, it is possible for an amusement park to be contained inside a building.
As regards your second question, although three types of activities are described in the definition of "amusement park" in subsection 1104(12) of the Regulations, in our view, the word "and" in "amusements, rides and audio-visual attractions" is a joint and several "and", such that it is not required that all three activities be permanently situated in a park in order for the place to qualify as an amusement park. However, the fact that a particular activity may qualify as an amusement, a ride or an audio-visual activity would not, in and by itself, qualify the park in which the activity takes place as an amusement park. In our view, one of the factors that distinguishes an amusement park from other forms of entertainment is the variety of activities offered. Accordingly, if a particular place offered a single form of entertainment, such as horseback riding, it would not qualify as an amusement park. However, horseback riding in combination with other activities could qualify the place as an amusement park.
In addition, under the statutory principle of noscitur a sociis or "associated words", the meaning of each of the terms in the list is influenced by the others which, when taken together, provides a better understanding of the type of activity offered at a place which meets the ordinary meaning of amusement park. For example, the word "rides" taken out of the context of "amusements, rides and audio-visual attractions" could include many forms of transportation, such as horseback riding, airplane rides or rides in a taxicab. However, in the context of subsection 1104(12) of the Regulations, the word "rides" is restricted to the type of ride normally associated with an amusement park.
Accordingly, although tennis, golf and fishing could be considered to be an amusement, since such activities are not normally associated with an amusement park, in our view, the tennis courts, the golf course and the fishing pond are unlikely to qualify as property used in connection with an amusement park for purposes of Class 37. The miniature golf may qualify, depending upon the other types of activities offered at the park.
We trust our comments will be of assistance to you.
Yours truly,
C. Chouinard
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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