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: Is a type of grape plant a replacement for a different type of grape plant?
Position: YES
Reasons: Our policy referrred to a different type of fruit tree.
January 13, 1999
Small & Medium Business HEADQUARTERS
Enterprises Division C. Tremblay
957-2139
Attention: Pat Valentino
983283
Replacement plantings
This is in reply to your memorandum dated December 10, 1998, regarding our policy on replacement plantings.
You enclosed a copy of a letter dated October 26, 1998, addressed to Minister Herb Dhaliwal, from XXXXXXXXXX. After reviewing the comments in our letter of April 15, 1998 (972995), on the subject of replacement trees, he is concerned that replacement plantings of grape wines might not be considered a deductible expense.
In our letter (972995), we stated that changing from one type of fruit to another would not be in our view a replacement. We were concerned with a situation where a type of fruit tree would be replaced with a different type of fruit tree, for example, an apple tree with a cherry tree. However, in the situation, as described by the XXXXXXXXXX, where a type of grape plant is replaced by the same or a different type of grape plant, it is our view that, as long as the replacement planting for the grape varietal is also a grape varietal, the cost would normally be a deductible business expense.
J. F. Oulton, CA
for Director,
Business and Publications 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, 1999
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, 1999
Email this Content