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: What is the proper classification for capital cost allowance purposes of silos built to store grain at a feed processing plant?
Position: Class 43
Reasons: Storage silo is otherwise included in Class 8.
2005-0011283
XXXXXXXXXX Luisa A. Majerus, CA
(613) 957-2138
April 21, 2005
Dear XXXXXXXXXX:
Re: Classification of Grain Storage Silos
This is in reply to your facsimile dated January 24, 2005, regarding the proper classification for Capital Cost Allowance ("CCA") purposes of silos built to store grain at a feed processing plant. The silo will store raw materials inventory. It is your view that the silo can be included in Class 43 of Schedule II of the Income Tax Regulations (the "Regulations") for CCA purposes since the feed processing plant is used primarily for the manufacturing or processing of goods for sale.
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. However, we offer the following general comments.
Where a grain storage silo is acquired to be used indirectly by the taxpayer, in Canada, primarily in the manufacturing or processing of goods for sale, it is included in Class 43 for CCA purposes.
We trust this information meets your needs at the current time.
Yours truly,
John Oulton, CA
For Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch
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