Administrative Policy

10 June 2019 Internal T.I. 2019-0796221I7 F - Qualification d’un véhicule à titre de « voiture de tourisme »

a passenger vehicle ceases to qualify as such when it commences to be used as a taxi given the s. 13(7)(b) deemed acquisition

When asked as to the qualification of a vehicle as a "passenger vehicle” where it initially was acquired for personal use and subsequently began to be used primarily as a taxi, CRA noted that this definition turned on that of "automobile," which excluded a motor vehicle acquired primarily for use as a taxi and that, by virtue of a deemed acquisition under the change of use rules in s. 13(7), the “acquired primarily for use as a taxi” condition is satisfied on the change of use. Consequently, at that time, the motor vehicle would cease to qualify as a "passenger vehicle."

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(b) s. 13(7)(b) applies when passenger vehicle converted to taxi use 52

9 March 2017 External T.I. 2017-0689241E5 F - Avantages imposables relatifs aux automobiles ou autres véhicules

emergency vehicle's markings must clearly mark it as police or fire vehicle

After being asked about fire chiefs, who were on call 24 hours a day throughout the year with a clearly identified vehicle, equipped with all emergency equipment, to enable them to get to an emergency scene quickly, CRA stated that “an emergency response vehicle…is generally considered to be clearly identified if it is readily identifiable by the general public as a police or fire vehicle because of symbols or lettering on the exterior of the vehicle.”

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) even where a vehicle available 24 hours a day to a fire chief is clearly marked as a firefighter car, the employer must still estimate whether there is a personal-use benefit 205

9 December 2010 Internal T.I. 2010-0371741I7 F - Automobiles mises à la disposition des employés

qualification as automobiles turns on design, not use

In concluding that vehicles, whose trunk and back seat are dedicated to carrying the equipment necessary for the employee to perform job-related duties, were automobiles, the Directorate stated:

In determining whether the motor vehicles described in the facts are automobiles for the purposes of the Act, the question is the design of the motor vehicles, not their use. If the motor vehicles described in the facts are designed primarily to transport individuals on highways and streets, those motor vehicles are "automobiles" if the seating capacity does not exceed nine and the exceptions in paragraphs (a) to (d) of the definition "automobile" do not apply.

In both of the situations described above, since the vehicles … are designed and constructed with more than three seating positions and are not similar to a van or pick-up truck, we are of the view - based on their use - that those vehicles are automobiles for the purposes of the Act.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) employer-provided automobile to attend occasional off-site meetings did not generate a benefit 182

19 January 2004 Internal T.I. 2003-0045911I7 F - Camionnette et définition de automobile

application of s. 13(5) where extended-cab pick-up truck ceased to be an automobile

An extended-cab pick-up truck was included in Class 10.1 when it was acquired in 2002 but fell into Class 10 for years commencing after 2002 because of the addition of the exclusion in s. (e)(iii) of the automobile definition, so that it was transferred to class 10 pursuant to s. 13(5). In this regard, the Directorate indicated that the capital cost of the Class 10.1 property should still reflect the s. 13(7)(g) limitation, and that employee benefits for use of the truck should be determined under s. 6(1)(a) rather than ss. 6(1)(e) and (k).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) - Paragraph 13(5)(a) when truck is transferred from Class 10.1 to 10, the capital cost as originally limited under s. 13(7)(g) is used for Class 10 purposes 120
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) s. 13(7)(g) limitation was preserved when pick-up truck transferred from Class 10.1 to 10 69

14 July 1995 External T.I. 9507975 - DEFINITION OF AUTOMOBILE

A "Hummer" qualifies as a "motor vehicle of a type commonly called a van or pick-up truck or a similar vehicle".

10 December 1992 Memorandum (Tax Window, No. 27, p. 21, ¶2327)

Unless the configuration of a pick-up truck is permanently altered by the removal of the rear seat, it will not qualify for the exemption from the definition of automobile in subparagraph (e)(i) merely by the removal of a backseat and utilization of the space which is behind the front seat to store tools.

88 C.R. - "Automobile Rules" - "With Respect to Expensive Automobiles"

A pick-up truck that has been adapted to transport more than two passengers as well as equipment, is included.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 67.3 14

Paragraph (e)

Subparagraph (e)(ii)

See Also

BH Parkway Place Ltd. v. The Queen, 2019 TCC 7 (Informal Procedure)

a Mercedes SUV used in transporting goods was not an automobile

D'Auray J also accepted evidence that the appellant (a commercial landlord) had purchased a $73,000 Mercedez Benz SUV in order to permit its principal to move goods to and from business premises. On this basis, the SUV was not an “automobile,” whose ITA definition (applicable also for ETA purposes), excluded a “van or pick-up truck, or a similar vehicle” (interpreted by CRA to include an SUV) “the use of which … is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income.” Accordingly, its cost was not limited for input tax credit (or, presumably, CCA) purposes to $30,000.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 182 - Subsection 182(1) a statutory penalty received by a landlord from a defaulted tenant was not subject to s. 182 218
Tax Topics - Excise Tax Act - Section 201 $74K SUV used for transporting goods was not subject to $30K cap 233

Pronovost v. The Queen, 2003 DTC 720, 2003 TCC 139 (Informal Procedure)

A six-passenger pick-up truck of the taxpayer was used by him to carry tools required for work by him as an employee of a forestry company, and his personal use of the truck was minimal. Accordingly, the truck did not constitute an automobile by virtue of paragraph (e)(iii) of the definition.

Subparagraph (e)(iii)

Administrative Policy

10 January 2005 Internal T.I. 2004-0091251I7 F - Définition d'automobile

exclusion applies even where the occupant is self-employed rather than an employee of the business that owns (or leases) the truck

An employee of a logging contractor who is required to work at logging sites that are special work sites or remote locations described in s. 6(6)(a)(i) or (ii), also carries on a business in which he holds a harvester, that he leases to the logging contractor for use at the logging sites, and a pick-up truck (purchased by him for $45,000) which he drives in transporting equipment and maintenance parts when working at such sites. In finding that the s. (e)(iii) exclusion applied, CRA stated:

[T]he wording of the exclusion … allow[s], inter alia, an employee's own vehicle that is used in the course of employment under the conditions set out in that subparagraph, and for which the employee's expenses are not reimbursed by the employee's employer, to be excluded from the definition of automobile … . [T]he exception in subparagraph (e)(iii) … may even apply to a self-employed person who primarily uses the individual’s vehicle at a location described in subparagraphs 6(6)(a)(i) or (ii) … .

The same exclusion would apply even if the individual leased rather than owned the truck.