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.
Principal Issues: Whether a property acquired after February 28, 2000 has to be "unused" in order to be included in Class 17 under paragraph (a.1)?
Position: No.
Reasons: The law. The March 16, 2001 draft version of paragraph (a.1) of Class 17 was amended in 2005
XXXXXXXXXX
2011-042908
Charles Rafuse
613-247-9237
January 11, 2011
Dear XXXXXXXXXX :
Re: Class 17
This is in response to your email of November 23, 2011, concerning the interpretation of class 17 of Schedule II of the Income Tax Regulations.
In particular, you have asked whether a particular property (that would otherwise be described in paragraph (a.1) of Class 17) would be included in Class 17 if such property was used before it was acquired by the particular taxpayer after February 27, 2000 but had never been used for any purpose whatever before February 28, 2000.
You have noted that the March 16, 2001 draft version of paragraph (a.1) of Class 17 would have prevented the inclusion (in that Class) of a property (otherwise described therein) that was used for any purpose before it was acquired by the particular taxpayer. However, it is your view that the wording in paragraph (a.1) of Class 17 is different from that draft version and does not appear to prevent the inclusion (in that Class) of a property that was used before it was acquired by the particular taxpayer as long as that property was not used for any purpose whatever before February 28, 2000.
Our Comments
We can confirm that a property (that would otherwise be described in paragraph (a.1) of Class 17) can qualify as a property described in paragraph (a.1) of Class 17 as long as that property was acquired after February 27, 2000 by the taxpayer and not used for any other purpose whatever before February 28, 2000.
We trust that these comments will be of assistance.
Yours truly
Michael Cooke
Manager
Capital Transactions Section
Business and Partnership Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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