Regulation 4600

Subsection 4600(1)

See Also

Gaston Cellard Inc. v. The Queen, 2005 DTC 699, 2002 DTC 1890 (TCC)

The cost of installing a weigh scale on a new foundation at a sawmill in the Gaspé region represented the cost of a building given that the installation of the weigh scale on its new foundations had the effect of making it an immovable.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 127 - Subsection 127(11.1) 95

Subsection 4600(2)


Cumberland Ready Mix Ltd. v. The Queen, 94 DTC 6079, [1994] 1 CTC 12 (FCTD)

The primary purpose for which concrete ready-mixers and one stone slinger (used to spread stone on construction sites) were designed was found to be the processing and delivery of concrete for the taxpayer's customers, i.e., operation off-highway on construction sites or at a plant. Accordingly, the fact that they were operated on highways and streets did not cause the exclusion in Regulation 4600(2)(e) for "a car or truck designed for use on highways or streets" to disqualify them for the investment tax credit.

Halliburton Services Ltd. v. The Queen, 85 DTC 5336, [1985] 2 CTC 52 (FCTD), aff'd 90 DTC 6320 (FCA).

The taxpayer purchased vehicles from an automotive equipment manufacturer, and then modified the vehicles by bolting to them various pieces of its equipment to be used in its well-pumping operations. The vehicles were classified as automotive equipment of the nature of a truck designed for use on a highway (ineligible), whereas the attached equipment was characterized as contractor's movable equipment (eligible).

See Also

Terroco Industries Ltd. v. MNR, 93 DTC 1, [1993] 1 CTC 2614 (TCC)

A 10-wheel truck which had been especially adapted for the purpose of serving as an integral part of a hot oil unit used for heating oil and pumping it under pressure into wells in order to melt paraffin accumulations could not be considered to have been "designed for use in highways or streets" (Regulation 4600(2)(e)) and instead was "equipment ... used in a gas or oil field in the production therefrom of natural gas or crude oil" (definition of "gas or oil well equipment" in Regulation 1104(2)).

Paragraph 4600(2)(f)

Administrative Policy

29 November 2005 Internal T.I. 2005-0130101I7 F - ITC - Logging Truck

trucking by sub-contractor can qualify

Opco used a truck, equipped with a new loader and a grapple, to transport pulpwood logs from woodlots for producers to a pulpwood processing plant, and also transported sawlogs that it purchased from lumber producers and resold to sawmill operators (and further, and to a lesser extent, transported sawlogs from woodlots belonging to it). CRA stated:

[L]og hauling services performed by a subcontractor from the point of harvest to the point of delivery of the logs to a processing plant (sawmill, pulp mill, plywood mill or other similar log processing location), can constitute an activity of logging for purposes of the definition of qualified property in subsection 127(9) and paragraph 4600(2)(f) … based, inter alia, on Lor-Wes … .

It appears to us that the purchase and resale of logs by Opco constituted an activity of logging for the purposes of paragraph 4600(2)(f) of the Regulations and the definition of "qualified property" in subsection 127(9).

Finally, a logging truck as described in paragraph 4600(2)(f) … could be considered to have been acquired for use in logging … if it were acquired by a subcontractor with the intention of using it for log hauling services to sawmills, pulp mills or other processing sites on behalf of a number of wood producers who are either farmers who own woodlots or simply other persons who own woodlots for whom income from the sale of wood is not the primary source of income.