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.
FROM A K.K. Horton DE HEAD OFFICE Director Specialty Rulings Directorate Sydney District Office J.D. Brooks 957-2097 M. Morrison
SUBJECT: FILE OBJET: Investment Tax Credit DOSSIER 7-4789 (900093) Qualified Property We are writing to you in response to your memorandum of March 6, 1990 in which you queried whether, in respect to vessels, the term "in Canada" as used in the definition of "qualified property" in subsection 127(9) of the Income Tax Act includes waters that are 12 to 200 miles off the coast of Canada.
We concur with your opinion that, based on the present wording of the Income Tax Act and Regulations, vessels used in these waters are not used in Canada and therefore do not qualify for investment tax credits. Pursuant to the definition of qualified property, the relevant consideration is the primary purpose for which an asset is acquired, and the vessels referred to apparently were not acquired to be used in Canada primarily for the purpose of fishing (or processing fish).
xxxxx
for Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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