M
J
Bonner:—The
appellant
appeals
from
assessments
of
income
tax
for
the
1977
and
1978
taxation
years.
He
claimed
investment
tax
credits
under
subsection
127(5)
of
the
Income
Tax
Act
in
respect
of
the
capital
cost
to
him
of
a
truck
which,
at
all
relevant
times,
was
used
for
hauling
logs.
The
claims
were
disallowed
on
assessment
on
the
basis
that
the
truck
was
not
“.
.
.
used
by
him
(the
appellant)
.
.
.
primarily
for
the
purpose
of.
.
.
logging
.
.
within
the
meaning
of
subparagraph
127(10)(c)(vii)
of
the
Act.
The
latter
provision
defines
“qualified
property”
in
respect
of
which
investment
tax
credits
are
allowed.
The
truck
in
question
was
acquired
by
the
appellant
to
enable
him
to
carry
out
his
obligations
under
a
contract
between
him
and
Kimberly-Clark
of
Canada
Limited.*
Under
the
contract
the
appellant
was
required
to
transport
logs
belonging
to
the
company
to
and
from
different
locations
on
the
company’s
timber
limits
in
consideration
of
payments
based
on
distance.
The
timber
limits
were
located
near
Terrace
Bay,
Ontario.
The
appellant
testified
that
he
drove
the
truck
in
question
for
one
eight-
hour
shift
per
day
and
that
another
person
who
was
employed
by
the
company
drove
it
during
a
second
daily
eight-hour
shift.
The
contract
produced
seems
somewhat
inappropriate
to
cover
the
second
class
of
use
but
nothing
appears
to
turn
on
the
possible
incompleteness
of
the
evidence
in
this
regard.
The
position
seems
clear.
Subparagraph
127(10)(c)(vii)
of
the
Act
looks
to
the
appellant’s
purpose
in
using
the
truck.
That
purpose
was
the
transportation
of
logs.
Although
the
transportation
of
logs
by
the
appellant
formed
part
of
the
company’s
logging
operation
it
did
not,
standing
alone,
constitute
logging
by
the
appellant.
The
appellant
did
not
possess
any
interest
in
the
timber
limits
or
in
the
logs
moved
and
he
was
not
interested
in
any
way
with
the
disposition
of
those
logs.
The
purpose
of
the
appellant
in
the
use
of
the
truck
and
the
broader
purpose
of
the
company
must
not
be
confused.
The
appeals
must
therefore
be
dismissed.
Appeal
dismissed.
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