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.
January 22, 1990
G. Cappella Head Office
Audit Review Section Specialty Rulings
Business Enquiries Group 148 2-1 Dave Turner
Toronto District Office 613-957-2094
Attention: S. Kosijer
File: 7-4433
Subject: Manufacturing and Processing
Deductions Claims
Sports Clothing Business
We are writing in reply to your memorandum of October 16, 1989 concerning a taxpayer's claims related to the manufacturing and processing (M & P") deduction.
In your memorandum you state that 24(1)
24(1)
Our comments
24(1) This opinion is based on the following:
1) Paragraph 5 of Interpretation Bulletin IT-145R states that the dyeing of cloth is considered to be a processing activity, therefore, silk screening would appear to be a processing activity. In addition, paragraph 48 of IT-145R states that "alterations of clothing at a retail clothing establishment or the sale of custom tailored or off the rack articles is considered to be qualified manufacturing or processing activity". Based on the comments in IT-145R it would appear that both silk screening and embroidering can be considered to be processing activities.
2)
24(1)
We trust our comments will be of assistance to you.
Chief Merchandising, Manufacturing and Construction Section Business and General Division Specialty Rulings Directorate Legislation and Intergovernmental Affairs Branch
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