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 considered to be a "lodge" for the purpose of paragraph 18(1)(l) of the Income Tax Act.
POSITION TAKEN:
The word "lodge" is not defined in the Act. However, for this purpose the Department considers the word "lodge" to mean an inn or resort hotel, particularly one that is a centre for recreational activities, as well a dwelling occupied on a seasonal basis in connection with particular activities, such as hunting or fishing.
REASONS FOR POSITION TAKEN:
Previous position and consistent with the ordinary meaning.
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932878 |
| XXXXXXXXXX |
B. Kerr |
Attention: XXXXXXXXXX
June 6, 1994
Re: Meaning of "lodge"
This is in response to your letter of September 24, 1993, wherein you requested our interpretation of what constitutes a "lodge" for the purpose of paragraph 18(1)(l) of the Income Tax Act. We apologize for the delay in responding.
Unless otherwise stated all references to statute are references to the Income Tax Act S.C. 1970-71-72, c.63 as amended consolidated to June 10, 1993 (the "Act").
Our Comments
In your letter you described five different types of situations involving hotels. It would be a question of fact whether a particular type of hotel would be considered a "lodge", and this determination would require an examination of all facts and other relevant information. The factors that would be looked at would include the location of the hotel, whether it is operated on a seasonal or year round basis, the type of facilities offered and whether the facilities offered are the primary, secondary or incidental focus of the hotel. However, we can offer the following general comments.
The word "lodge" is not defined in the Act. However, as stated in response to question 15 of the Revenue Canada Round Table held at the 1984 Conference of the Canadian Tax Foundation, the Department considers the word "lodge", for this purpose, to mean an inn or resort hotel, particularly one that is a centre for recreational activities, as well a dwelling occupied on a seasonal basis in connection with particular activities, such as hunting or fishing.
This is consistent with its ordinary meaning as found in the Eighth Edition of the Concise Oxford Dictionary where it defines the word "lodge" in part as "...any large house or hotel especially in a resort..." and it defines "resort" as "...a place frequented especially for holidays or for a specified purpose or quality (seaside resort, health resort)...".
We trust that these comments will be of assistance.
Yours truly,
R. Albertfor DirectorBusiness and General DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch
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