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.
December 4, 1984
D.W. Joy, Director, Regulations Division, Revenue Canada, Taxation, 88 Metcalfe Street, Room 401, Ottawa, Ontario. K1A OL8
Dear Don:
Re: Subparagraph 1205 (c)(i) of I.T.R. and Class 10(1) of Schedule II.
This is in reply to your letter of November 14, 1984. I believe property, that is a water pipeline and water pumping station referred to in the 1983 memorandum from Corporate Rulings was intended to be classified in old paragraph (ka) now (1) of Class 10 of Schedule II. Paragraph (k) and (g) of Class 10 include properties that are mine buildings, machinery and equipment used in the operation of a mine. Although it may be argued that the property under consideration was not acquired for "the purpose of ... providing services to the mine" but rather for the mill production process, I still believe such property should be included in class 10(L). This class was originally introduced to provide a 30% write-off for all the peripheral property related to a mining venture which, before tax reform, was included in various low rate write-off classes. It was agreed that these various properties, indirectly related to the mining operation, would have a useful life similar to the mine buildings - which would normally be the life of the mine. The class 10(L) property for new mines was eligible to earn depletion if acquired on or after November 18, 1978, while similar property related to a major expansion of an existing mine became eligible to earn depletion if acquired after December 11, 1979.
I trust the above comments will be helpful.
Yours sincerely,
Derek Williams, Chief, Tax Policy and Legislation.
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