Paragraph 20(1)(a) - Capital cost of property
Administrative Policy
6 November 2003 External T.I. 2003-0039525 F - Canadian Renewable & Conservation Expenses
In finding that CCA claimed by a corporation on equipment used in a Canadian renewable and conservation expenses (CRCE) project did not qualify...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1219 - Subsection 1219(1) | CCA is not an outlay or expense, and cannot qualify as CRCE | 126 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(viii) | computers used in operating landfill biogas site might be Class 10 property, and applications software would be Class 43.1 or Class 12 property/ below-surface pipes would not qualify | 302 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 - Paragraph 12(o) | applications software used by computers for operation of biogas landfill site would be Class 43.1 or Class 12 property | 180 |
Revising Claims
Cases
St. Benedict Catholic Secondary School Trust v. Canada, 2022 FCA 125
The taxpayer, over the course of its 1997 to 2003 taxation years, claimed capital cost allowance and generated non-capital losses. When CRA denied...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E | reductions to UCC from previous CCA claims could not be reversed | 348 |
Mattabi Mines Ltd. v. Ontario (Minister of Revenue), [1988] 2 CTC 294, [1988] 2 S.C.R. 175
The taxpayer, which first made a request at trial that it be permitted CCA claims for Ontario purposes in computing its income for 1974 in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | direct causal connection to income need not be demonstrated | 155 |
| Tax Topics - Statutory Interpretation - Comparison of Provisions | "income" has same meaning in different sections | 114 |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 34 | |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 56 |
See Also
St. Benedict Catholic Secondary School Trust v. The Queen, 2020 TCC 109, aff'd 2022 FCA 125
The taxpayer, over the course of its 1997 to 2003 taxation years, claimed capital cost allowance and generated non-capital losses. When CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E | Variable E could not be subsequently adjusted by reversing CCA claims | 375 |
Administrative Policy
2 November 2023 APFF Roundtable Q. 8, 2023-0982881C6 - Revision of Capital Cost Allowance Claims
The taxpayer in St. Benedict claimed capital cost allowance over the course of its 1997 to 2003 taxation years, thereby generated non-capital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E | CRA will exercise its discretion in IC84-1 having regard to avoiding inappropriate tax results | 300 |
13 March 2012 External T.I. 2012-0432111E5 - Revised joint venture policy
After adverting to the previous withdrawal of its position that joint venture income could be computed as if the joint venture had a separate...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(1) - Paragraph 249.1(1)(c) | 131 |
7 January 2011 Internal T.I. 2010-0387011I7 F - DPA dans une année prescrite
CRA reassessed Opco to deny an investment tax credit claimed for Year 1, which was permitted based on a misrepresentation attributable to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | tax from s. 152(4)(a)(i) reassessment of statute-barred year could not be offset through increased CCA claims for that year | 321 |
19 October 2010 External T.I. 2010-0369671E5 F - Révision d'une déduction pour amortissement
Can a revision be made to capital cost allowance claimed in a previous taxation year regarding partnership property? CRA responded:
In general, a...
13 May 2005 Internal T.I. 2005-0127041I7 F - Revisions of CCA and non-capital loss claims
Opco initially filed its return for its 2000 taxation year on the basis on deducting a non-capital loss (“NCL”) carried forward from its 1997...
28 July 1995 External T.I. 9519555 - IT-315
Respecting the acquisition of shares of a corporation that is financed by interest-bearing debt issued by the purchaser to the vending...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 48 |
88 C.R. - Q.44
Where RC reviews an acquisition of a building which occurred 10 years previously and determines that its capital cost was $50,000, rather than the...
IC 84-1 "Revision of Capital Cost Allowance Claims and Other Permissive Deductions"
10. Where a taxpayer requests a revision of capital cost allowance claimed in a taxation year for which a notification that no tax is payable had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | 160 |
Paragraph 20(1)(bb)
Articles
Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Trusts Resident in Canada", Chapter 3 of Canadian Taxation of Trusts, (Canadian Tax Foundation), 2016.
Narrow CRA interpretation of principal business test (p. 236)
Since the principal business test in paragraph 20(1)(bb) requires only that the...
Paragraph 20(1)(b) - Cumulative eligible capital amount
Administrative Policy
16 November 89 T.I. (April 90 Access Letter, ¶1169)
The deduction in s. 20(1)(b) cannot be applied to income from property.