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: Year 2000 computer compliance relief for an ultrasound scan
Position: An ultrasound scan is not equipment that will qualify for this tax relief
Reasons: It is not equipment decried in either paragraph (f) of class 10 or paragraph (o) of class 12
XXXXXXXXXX 992457
September 16, 1999
Dear Sir:
Re: Acquisition of a Year 2000 Compliant Ultrasound Scan
We are writing in response to your letters dated August 30 and September 14, 1999, wherein you requested confirmation that you may write off, for income tax purposes, the entire cost of ultrasound scan equipment that is year 2000 compliant and that is acquired in 1999.
On June 11, 1998, the Minister of Finance announced that tax relief would be provided to small businesses for year 2000 computer compliance. In general, accelerated capital cost allowance would be provided to small and medium sized firms (including individuals) who acquired computer hardware and software (between January 1, 1998 and June 30, 1999) to replace systems that are not year 2000 compliant. In its June 2, 1999 news release on this topic, the Department of Finance announced that this deadline had been extended to October 31, 1999.
The draft legislation released by the Department of Finance specifically contemplates that only property included in either paragraph (f) of Class 10, or in paragraph (o) of Class 12 in Schedule II of the Income Tax Regulations will qualify for this tax relief. In general terms, such property would only include computer hardware and systems software and eligible application software. It is our view that ultrasound scan equipment would not be equipment that would be eligible for the tax relief you are seeking as it is not property included in either of the specific provisions referred to above.
We trust our comments will be of assistance to you.
Yours truly,
Paul Lynch
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
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