Class 1
Cases
The Queen v. Hampton Golf Club Ltd., 86 DTC 6513, [1986] 2 CTC 403 (FCTD)
Golf Club greens and tees were "not so obviously artificial as to be readily distinguishable from the natural earth surroundings of the rest of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) | golf club greens not a structure | 45 |
See Also
Repsol Canada Ltd. v. The Queen, 2015 TCC 21, aff'd 2017 FCA 193
The taxpayers were related companies, and the general partner and a 75% limited partner of a partnership which constructed a terminal and jetty in...
Lansdowne Equity Ventures Ltd. v. The Queen, 2007 DTC 3, 2006 TCC 565
Mobile homes with axles, wheels, trailer hitches, brakes and emergency lights but which were now sitting on blocks were found to be "trailers"...
Swan Lake Recreation Resort Ltd. v. Registrant, Kamloops Land Title Office (1999), 174 DLR (4th) 549 (BCSC)
Before going on to find that a mail box was not a "building" for purposes of the Condominium Act (B.C.), Cowan J. stated (at p. 565):
"In my view,...
Administrative Policy
8 January 2008 Internal T.I. 2007-0254881I7 F - Amortissement d'une aire de camping
Regarding the classification of a septic tank on a campground, the Directorate referred to Superior Pre-Kast Septic Tanks ([1978] 2 S.C.R. 612),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | costs of developing a campground would generally be added to Class 17(c) | 98 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(17) | campground, if a business, not subject to leasing property restriction rule | 108 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 | swimming pool is a water storage tank | 98 |
Paragraph 1(n)
Cases
Canada v. Repsol Energy Canada Ltd., 2017 FCA 193
The taxpayers were the partners of a limited partnership which constructed a terminal and jetty in St. John to which liquid natural gas would be...
Paragraph 1(q)
Cases
Stearns Catalytic Ltd. v. The Queen, 90 DTC 6286, [1990] 1 CTC 398 (FCTD)
Two shelters which enclosed equipment in order to muffle noise were found to constitute buildings or other structures for purposes of Class 3...
The Queen v. Hampton Golf Club Ltd., 86 DTC 6513, [1986] 2 CTC 403 (FCTD)
Golf Club greens and tees were "not so obviously artificial as to be readily distinguishable from the natural earth surroundings of the rest of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 1 | 45 |
British Columbia Forest Products Ltd. v. MNR, 71 DTC 5178, [1971] CTC 270 (SCC)
Supporting piers, reinforced concrete foundations and chest walls which facilitated and were necessary for the production of paper nonetheless had...
See Also
Agence du revenu du Québec c. Adélard Soucy (1975) Inc., 2021 QCCA 1050
The taxpayer custom-fabricated pieces of heavy specialized equipment at the northern mining site of one of its mining customers. In order for its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | a movable structure for warming a soldering operation was not described in Class 8 | 437 |
Lloyd v. The Queen, 2002 DTC 1493 (TCC)
Before going on to find that a building was a Class 6 rather than Class 3 property because it had no footings rather base support below ground...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | taxpayer can attack own transaction as legally ineffective | 138 |
| Tax Topics - General Concepts - Tax Avoidance | taxapyer can argue legally ineffective transactions | 139 |
| Tax Topics - Income Tax Act - Section 84.1 - Subsection 84.1(1) | 76 |
Sun Life Assurance Co. of Canada v. R., 97 DTC 422, [1997] 3 C.T.C. 2593 (TCC)
Bowman TCJ. followed his earlier decision in Cadillac Fairview Corp. Ltd. in finding that density rights purchased by the taxpayer from a nearby...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | density rights are land even if building constructed | 87 |
Cadillac Fairview Corp. Ltd. v. The Queen, 97 DTC 405, [1996] 2 CTC 2197 (TCC)
The taxpayer expended $11.2 million in obtaining zoning changes that were desirable for the proposed Phase II of the Eaton Centre (i.e.,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | costs of density rights were land costs | 212 |
Superior Pre-Knit Septic Tanks Ltd. v. The Queen, 78 DTC 6263, [1978] CTC 431 (SCC)
Pre-cast concrete septic tanks were "structures". (Excise Tax Act (Canada), s. 26(4).)
Administrative Policy
16 March 2012 External T.I. 2012-0432101E5 F - Acquisition d'un séparateur d'huile
Respecting an oil separator acquired by a garage in order to meet government requirements, CRA stated:
To the extent that an oil separator is an...
17 December 2014 External T.I. 2014-0560281E5 - Arena and skateboard park - CCA classes
The taxpayer constructed a hockey arena and a skateboard park for use in its children's summer camp. CRA stated:
"Building" is a term of wide...
Class 2
Cases
Gulf Canada Resources Ltd. v. The Queen, 95 DTC 5189, [1995] 1 CTC 334 (FCTD), partially rev'd 96 DTC 6065 (FCA).
A 2200 ft. extension to a concrete water intake line that provided water for use in a refinery was not established by the taxpayer to not be a...
Pacific Northern Gas Ltd. v. The Queen, 90 DTC 6252, [1990] 1 CTC 380 (FCTD), aff'd 91 DTC 5287 (FCA)
After noting that the decisions in Nova and in Northern and Central Gas were essentially contradictory on this point, Joyal J. found (following...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | 16 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 95 |
Nova, an Alberta Corporation v. The Queen, 88 DTC 6386, [1988] 2 CTC 167 (FCA)
Pipes and valves located between the inlet and outlet connections of the main pipeline and to and from the compressor station and metering...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 85 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 106 |
Alberta Oil Sands Pipeline Ltd. v. The Queen, 88 DTC 6059, [1988] 1 CTC 99 (FCTD)
Linefill was not part of a pipeline and accordingly was a Class 8 asset.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | owner of continually changing linefill | 49 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | property consisted of shifting molecules | 94 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 15 |
Northern and Central Gas Corp. Ltd. v. The Queen, 85 DTC 5144, [1985] 1 CTC 192 (FCTD), aff'd 87 DTC 5439, [1987] 2 CTC 241 (FCA)
The subparagraphs of class 2 were intended to encompass the whole process of the production and distribution of electricity, heat, water and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 87 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 65 |
Class 3
See Also
MNR v. Plastibeton Inc., 86 DTC 6400, [1986] 2 CTC 211 (FCA)
Highway medians constructed of precast polymer concrete were not a separate structure from the highway, but merely a part of the structure of the...
Plan A Leasing Ltd. v. The Queen, 76 DTC 6159, [1976] CTC 261 (FCTD)
An individual ("Lunenfeld") conveyed a building to a corporation ("159 Bay") and conveyed the underlying land to a second corporation ("Great...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 13 | 84 |
Administrative Policy
28 April 2004 External T.I. 2004-0064781E5 - Classification of Conduit
Underground conduit which carries wire or cable referred to in paragraph (j) of Class 3 is a Class 3 rather than a Class 8 asset.
Class 4
Administrative Policy
16 November 2009 External T.I. 2009-0313081E5 F - Classification d'un chemin de fer avant 1958
Into what class does a railway system acquired before 1958 by a corporation with a railway business fall? After assuming that the corporation was...
Class 6
Administrative Policy
18 December 2013 External T.I. 2013-0479421E5 F - Section 30 and Cranberry Farm
Following Oriole Fair Parkways (56 DTC 537), the costs of constructing an artificial pond for use in irrigating a cranberry farm would be in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | initial cranberry plant planting is a cost of land | 94 |
| Tax Topics - Income Tax Act - Section 30 | costs of clearing, levelling and draining lands, but not of constructing basins, for a cranberry farm are currently deductible | 136 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | costs of constructing cranberry farm basins included in Class 17 | 79 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | irrigation system included, drainage costs deductible under s. 30 | 79 |
8 January 2008 Internal T.I. 2007-0254881I7 F - Amortissement d'une aire de camping
Regarding the classification of a swimming pools in a campground, the Directorate stated:
As for swimming pools that may be found at campgrounds,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | costs of developing a campground would generally be added to Class 17(c) | 98 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(17) | campground, if a business, not subject to leasing property restriction rule | 108 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 1 | septic tanks are structures | 167 |
Paragraph (e)
Administrative Policy
17 July 2007 External T.I. 2007-0220121E5 F - Lac artificiel - catégorie d'amortissement
Before finding that the costs of creating an artificial lake to be used for a fishing resort should be included in Class 6, CRA noted:
… Oriole...
15 July 2004 Internal T.I. 2004-0071101I7 F - Site de neiges usées
A corporation operating a snow removal business constructed a waste snow storage site to store waste snow and allows water to flow in culverts...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | waste snow storage site was qualifying surface construction | 180 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(c) | tank for holding waste snow melt and decanting the pollutants was not a building used in processing | 113 |
Class 7
Administrative Policy
12 March 2012 Internal T.I. 2011-0431631I7 F - Catégorie d'amortissement- maison flottante
What is the applicable class for a floating home or "houseboat" (on a large pontoon with an outboard motor) that is rented out for navigation of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Vessel | vessel is as defined in Canada Shipping Act, 2001 | 115 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 44 - Paragraph 44(h) | IA s. 44(h) applied to reference definition in replacement Canada Shipping Act | 48 |
Paragraph 7(c)
Administrative Policy
25 November 2010 External T.I. 2010-0377841E5 F - Catégorie d'amortissement - bateau
The engine of a boat has been removed (so that to be moved, it would need to be towed) and it is kept moored at a dock for use in an (unspecified)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 44 - Paragraph 44(h) | “vessel” informed by meaning in replacement Canada Shipping Act | 166 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Vessel | "vessel" now defined in (replacement) Canada Shipping Act, 2001 | 55 |
Class 8
Cases
Coopers & Lybrand Ltd., Trustee of Hawboldt Hydraulics (Canada) Inc. v. The Queen, 92 DTC 6452, [1992] 2 CTC 363 (FCTD)
An operation of fabricating cylinders, pistons, rods or other parts to be incorporated into hydraulic components which customers of the taxpayer...
Stearns Catalytic Ltd. v. The Queen, 90 DTC 6286, [1990] 1 CTC 398 (FCTD)
A stock of spare parts which the taxpayer kept on hand for potential use in the event of machine or equipment failure did not qualify as property...
Pacific Northern Gas Ltd. v. The Queen, 90 DTC 6252, [1990] 1 CTC 380 (FCTD), aff'd 91 DTC 5287 (FCA)
After noting that the decisions in Nova and in Northern and Central Gas were essentially contradictory on this point, Joyal J. found (following...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | 16 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 2 | 95 |
Nowsco Well Service Ltd. v. The Queen, 88 DTC 6300, [1988] 2 CTC 24 (FCTD)
Equipment which was designed for use in enhancing the flow of oil at an oil well, but which with a special licence could be driven on a highway as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 53 |
Alberta Oil Sands Pipeline Ltd. v. The Queen, 88 DTC 6059, [1988] 1 CTC 99 (FCTD)
Linefill was not part of a pipeline and accordingly was a Class 8 asset.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | owner of continually changing linefill | 49 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | property consisted of shifting molecules | 94 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 2 | 15 |
Northern and Central Gas Corp. Ltd. v. The Queen, 85 DTC 5144, [1985] 1 CTC 192 (FCTD), aff'd 87 DTC 5439, [1987] 2 CTC 241 (FCA)
The subparagraphs of class 2 were intended to encompass the whole process of the production and distribution of electricity, heat, water and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 87 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 2 | 65 |
Nova Construction Co. Ltd. v. The Queen, 83 DTC 5105, [1983] CTC 58 (FCTD)
The Act contemplates that an activity may constitute both manufacturing or processing and construction. Accordingly, it was found that an asphalt...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29 | 88 |
Butler v. MNR, 67 DTC 5019, [1967] CTC 7 (Ex Ct)
The value of customer lists of an accounting practice purchased by an accounting firm was in their intangible value as goodwill. Accordingly, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Goodwill, Trademarks and Customer Lists | 45 |
Southam Business Publications Ltd. v. MNR, 66 DTC 5215, [1966] CTC 265 (Ex. Ct.), briefly aff'd 67 DTC 5150 (SCC)
As part of the purchase of the Financial Times, the taxpayer paid $50,000 for the customer lists of the vendor. Noël J. found that what was of...
See Also
Agence du revenu du Québec c. Adélard Soucy (1975) Inc., 2021 QCCA 1050
The taxpayer custom-fabricated pieces of heavy specialized equipment at the northern mining site of one of its mining customers. In order for its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) | a movable structure for warming M&P equipment was a Class 1(q) building | 369 |
Roy Legumex Inc. v. MNR, 90 DTC 1858, [1990] 2 CTC 2389 (TCC)
Containers which were used to dry legumes in order that they could be split were found to be structures that were manufacturing or processing...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29 | 102 |
Re St. Lawrence Cement Inc. (1985), 52 OR (2d) 545 (HCJ.)
Various silos owned by a cement operator were not "machinery" because their primary function was storage and nothing physical happened in them...
Administrative Policy
S3-F4-C1 - General Discussion of Capital Cost Allowance
Choice among classes
1.120 The phrase "property that would otherwise be included in" appears in several classes in Schedule II, which could lead...
12 June 2014 External T.I. 2014-0527651E5 - Whether keeping a zoo is a farming activity
CRA stated that zoo animals:
are capital assets and cannot be expensed. In addition, no capital cost allowance may be deducted under paragraph...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Farming | zoo not farming | 122 |
18 December 2013 External T.I. 2013-0479421E5 F - Section 30 and Cranberry Farm
In converting lands to a cranberry farm, there would need to be a reasonable allocation of the relevant costs between the cost of installing a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | initial cranberry plant planting is a cost of land | 94 |
| Tax Topics - Income Tax Act - Section 30 | costs of clearing, levelling and draining lands, but not of constructing basins, for a cranberry farm are currently deductible | 136 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | costs of constructing cranberry farm basins included in Class 17 | 79 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 | costs of constructing irrigation pond included | 33 |
20 March 2013 External T.I. 2012-0442571E5 F - Coût d'acquisition d'un terrain
A developer acquired Land 1 from a Canadian-controlled private corporation (the “Corporation”) in exchange for cash and for land which the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | cost of land acquired from developer equal to total barter value minus amounts allocated to Classes 8 and 17 | 152 |
7 August 2007 Internal T.I. 2007-0240691I7 - Music CD production-CCA class
A company incurred costs of studio fees, mixing, song writing, and musicians' fees in producing a music CD. If these are capital expenditures,...
13 December 1994 External T.I. 9416075 - RAPID TRANSIT CAR
A rapid transit car that is a railway car will not fall within Class 8(k) but, rather, within Class 35 (if acquired after 25 May 1976).
4 August 1992 T.I. 921654 (April 1993 Access Letter, p. 132, ¶C9-259)
18-litre bottles used to hold water delivered to customers' premises until returned to the taxpayer for refilling by it belong to Class 8 rather...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 | 27 |
9 April 1992 Memorandum (Tax Window, No. 18, p. 15, ¶1870)
Styroblocks that are used in seed boxes for starting young trees do not meet the requirements of Class 12 (tools or returnable containers) and,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 | 27 |
11 October 1991 T.I. (Tax Window, No. 11, p. 4, ¶1520)
A desktop publishing system did not constitute general-purpose electronic data processing equipment and system software therefor and therefore is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 28 |
7 October 1991 T.I. (Tax Window, No. 10, p. 19, ¶1501)
An electronic safe for the storage and protection of investment papers qualifies as a Class 8 asset.
IT-79R3 "Capital Cost Allowance - Buildings or other Structures"
Paragraph 8(a)
See Also
Adélard Soucy (1975) Inc. v. Agence du revenu du Québec, 2019 QCCQ 6956, rev'd 2021 QCCA 1050
The taxpayer, whose business entailed the bending, cutting and assembly through soldering of metallic equipment such as junction boxes, gutters...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29 | building was functionally integrated with M&P so as to itself be M&P equipment | 210 |
Québec (Sous-ministre du Revenu) v. Plastiques Simport ltée, 2007 QCCA 160
The taxpayer was engaged in the manufacture of plastic objects used in laboratories or for medical purposes, which were made by 30 machines...
Paragraph 8(b)
Administrative Policy
18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T
The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) - Paragraph 1102(5)(a) - Subparagraph 1102(5)(a)(iii) | rendering of an empty shell suitable for manufacturing constituted substantially changing its nature | 288 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost of installing property part of that property’s cost | 357 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(4) | to be improvements or alterations to leasehold interest, property acquisitions must be assimilated to landlord’s property | 225 |
| Tax Topics - General Concepts - Ownership | leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise | 101 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) | building shell was a building or structure/ addition refers to extension of structure | 294 |
21 July 2003 External T.I. 2002-0180465 F - CATEGORIES 8 ET 43
Improvements were made to the portion of the building where the manufacturing operations of the plant will be carried out in order to comply with...
Paragraph 8(c)
Administrative Policy
15 July 2004 Internal T.I. 2004-0071101I7 F - Site de neiges usées
A corporation operating a snow removal business collected the waste snow melt in a settling tank, with pollutants collected at its bottom, and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | waste snow storage site was qualifying surface construction | 180 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 - Paragraph (e) | tank for holding waste snow melt and decanting the pollutants was a storage tank (Class 6(e)) | 202 |
Paragraph 8(i)
Administrative Policy
22 March 2011 Internal T.I. 2010-0387551I7 F - Dépenses - travailleur indépendant
The taxpayer operated an erotic website for which she was the model and her husband took care of the technical side, with profits split equally. ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h) | expenses of costumes, breast implants and rejuvenation expenses of erotic website were non-deductible | 165 |
Paragraph 8(j)
See Also
Agence du revenu du Québec v. Unidisc Musique Inc., 2021 QCCA 393
Unidisc bought master recordings of music, i.e., the magnetic tapes containing the original recordings of the music for the purpose of having them...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14.1 | master recordings were intangible (Class 14.1) rather than tangible (Class 8) property | 341 |
| Tax Topics - General Concepts - Onus | failure to lead evidence as to allocation meant that the taxpayer was stuck with the ARQ allocation | 143 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | misunderstanding by the ARQ of the Copyright provisions supporting its reassessment did not invalidate it | 152 |
Unidisc Musique Inc.v. Agence du revenu du Québec, 2019 QCCQ 1818, rev'd 2021 QCCA 393
The plaintiff (Unidisc) was in the business of purchasing master recordings of music (“masters”), i.e., the magnetic tapes containing the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14.1 | master recordings are tangible rather than intangible property | 308 |
Class 9
Administrative Policy
11 March 2016 External T.I. 2016-0633111E5 - CCA Class of a drone
A taxpayer in the real estate business uses an aerial drone to take photographs of houses for sale. How should it be classified? CRA...
Class 10
Cases
Lindwest Holdings Ltd. v. The Queen, 88 DTC 6482, [1988] 2 CTC 287 (FCTD)
Equipment which both was "designed" for the purpose of excavating or moving earth and rock (Class 22) and which was acquired for logging...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 22 | 44 |
Nova, an Alberta Corporation v. The Queen, 88 DTC 6386, [1988] 2 CTC 167 (FCA)
Pipes and valves located between the inlet and outlet connections of the main pipeline and to and from the compressor station and metering...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 2 | 85 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 106 |
Nowsco Well Service Ltd. v. The Queen, 88 DTC 6300, [1988] 2 CTC 24 (FCTD)
Equipment which was designed for use in enhancing the flow of oil at an oil well, but which with a special licence could be driven on a highway as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 53 |
The Queen v. Nomad Sand & Gravel Ltd., 87 DTC 5343, [1987] 2 CTC 112 (FCTD)
A sand and gravel pit was not a "mine", and front end loaders used in the gravel pit operation accordingly were Class 22, rather than Class 10...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 22 | 28 |
Halliburton Services Ltd. v. The Queen, 85 DTC 5336, [1985] 2 CTC 52 (FCTD), aff'd 90 DTC 6320 (FCA).
Equipment which the taxpayer bolted or welded to its trucks to be used in its well-pumping operations was held to be contractor's movable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits | separate sale of well fluids | 65 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29 | 55 | |
| Tax Topics - Income Tax Regulations - Regulation 4600 - Subsection 4600(2) | 63 |
Howden Brothers Construction Ltd. v. The Queen, 80 DTC 6393, [1980] CTC 529 (FCTD)
Metal sheets that were used by a contractor to construct a form in order to receive wet concrete which form was then disassembled following the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 | 79 | |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | 59 |
See Also
Suncor Energy Inc. v. The Queen, 2001 DTC 660 (TCC), aff'd 2002 DTC 7395, 2002 FCA 350
The taxpayer used the overburden and tailings produced or extracted by it in the process of extracting bitumen from oil sands deposits to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | 141 |
Cargill Ltd. v. The Queen, 96 DTC 1461 (TCC)
After noting that the common elements that make up a trailer or wagon include "(i) a wheeled vehicle; (ii) drawn by another; (iii) that is...
Gordon v. The Queen, 95 DTC 493 (TCC)
A film that was described in evidence as being over 50% complete was found to be depreciable property described in Class 10 given that it was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | 100 |
Administrative Policy
8 January 1996 External T.I. 9530675 - CLASSIFICATION OF A MOTORHOME
Motorhomes are designed primarily as recreational vehicles and do not qualify for inclusion under either Class 10.1 or Class 16 since they do not...
31 January 1994 Internal T.I. 9328977 F - CCA Class of Building Used in Peat Processing
Regulation 1104(3), which defines mining to include the harvesting of peat, does not apply to an operation of cleaning, compressing and baking...
24 March 1993 Memorandum (Tax Window, No. 32, p. 20, ¶2623)
Re classification of computer equipment and automotive equipment acquired for use in a mine.
10 November 1992 Memorandum 923297 (September 1993 Access Letter, p. 409, ¶20-1159)
Re whether a limestone quarry was a mine for purposes of paragraph 10(k).
2 December 1992 Memorandum (Tax Window, No. 27, p. 22, ¶2323)
An outboard motor is a class 10 asset based on a broad interpretation of the phrase "automotive equipment".
13 January 1992 T.I. (Tax Window, No. 15, p. 9, ¶1693)
If the film was not completed at the year end and will not be completed in a subsequent year, it cannot be included in Class 10.
11 October 1991 T.I. (Tax Window, No. 11, p. 4, ¶1520)
A desktop publishing system did not constitute general-purpose electronic data processing equipment and system software therefor and therefore is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 28 |
IT-283R2 "Capital Cost Allowance - Video Tapes, Videotape Cassettes, Films, Computer Software and Master Recording Media"
Paragraph 10(f)
Paragraph 10(k)
Administrative Policy
24 May 2005 External T.I. 2005-0121291E5 F - Processing in Canada of ore
Mineco crushes nickel ore underground in its mine. Opco, which operates a bulk ore hauling business in Canada, uses a mobile crushing plant (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing - Paragraph (f) - Subparagraph (f)(i) | second crushing of nickel ore at the surface is excluded processing | 110 |
| Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(1) - Paragraph 1204(1)(b) - Subparagraph 1204(1)(b)(iii) - Clause Subparagraph 1204(1)(b)(iii)(A) | second crushing of nickel ore at the surface generated gross resource profits | 142 |
Paragraph 10(x)
Administrative Policy
17 February 2010 Internal T.I. 2009-0348461I7 F - Transfert d'une PCMC à une société mère
After a subsidiary (“Imageco”) of a Canadian-controlled private corporation (“Canco”) produced a film and DVD (the "CFVPs"), being...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Current expense vs. capital acquisition | fully claimed films productions acquired from production sub on capital account | 66 |
Class 12
Cases
Howden Brothers Construction Ltd. v. The Queen, 80 DTC 6393, [1980] CTC 529 (FCTD)
Metal sheets that were used by a contractor to construct a form in order to receive wet concrete which form was then disassembled following the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 79 | |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | 59 |
See Also
Desgagné v. The Queen, 2012 DTC 1237 [at 3664], 2012 TCC 63 (Informal Procedure)
The gowns and bands that the taxpayer, a lawyer, wore in court were covered by paragraph (f) of Class 12.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) | 108 |
McKee v. The Queen, 77 DTC 5345, [1977] CTC 491 (FCTD)
Movie scripts which were never turned into films did not qualify as motion pictures.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 127 | |
| Tax Topics - Income Tax Act - Section 245 - Old | 15 |
Administrative Policy
29 October 2013 External T.I. 2013-0507121E5 - Website costs
Determining whether website costs are in the nature of income or capital should entail an analysis of each component of the site. The...
24 November 2010 External T.I. 2010-0380521E5 - Web page costs
CRA indicated that the costs of application software purchased from third parties to develop a web page, and the labour costs of development,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Patents or other intangible property | 119 |
26 April 1995 Internal T.I. 9506797 - CCA - BOOKPLATE COSTS
Bookplates created for the printing of books would not qualify as a "pattern, mould or die", and instead would be property described in Class 8,...
13 April 1994 Internal T.I. 9400887 - COMPUTER SOFTWARE
When the assets of a computer software business are purchased for a lump sum purchase price, the amounts allocated to Class 12 would include not...
23 November 1992 T.I. 923452 (September 1993 Access Letter, p. 409, ¶C20-075)
Re whether components of a specialized electronic point-of-sale inventory system for a retail application will qualify under paragraph 12(s).
7 September 1992 T.I. (Tax Window, No. 24, p. 7, ¶2189)
Most computer software acquired for use internally in a business is included in Class 12(o). However, a contractual right or licence of a capital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14 | 49 |
20 August 1992 T.I. (Tax Window, No. 23, p. 14, ¶2170)
A contractual right or licence of a capital nature to buy and resell, to sublet or to otherwise market computer software is not a right or licence...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14 | 54 |
4 August 1992 T.I. 921654 (April 1993 Access Letter, p. 132, ¶C9-259)
18-litre bottles used to hold water delivered to customers' premises until returned to the taxpayer for refilling by it belong to Class 8 rather...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 27 |
4 March 1992 T.I. (Tax Window, No. 17, p. 21, ¶1782)
Videotape cassettes may be depreciated under Class 12(r) if the owner acquires them for the purpose of renting and the cassettes are not expected...
9 April 1992 Memorandum (Tax Window, No. 18, p. 15, ¶1870)
Styroblocks that are used in seed boxes for starting young trees do not meet the requirements of Class 12 (tools or returnable containers) and,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 27 |
3 January 1992 T.I. (Tax Window, No. 15, p. 17, ¶1681)
Re meaning of "consumers" in Class 12(s).
25 Aug. 89 T.I. (Jan. 90 Access Letter, ¶1088)
A "right or licence to use computer software" can include the right to reproduce computer software, the right to use it internally, the right to...
18 Aug. 89 T.I. (Jan. 90 Access Letter, ¶1087)
If the Minister revokes a certification, the revocation is effective as of the date of issue of the film certificate and the asset is removed from...
IT-283R2 "Capital Cost Allowance - Video Tapes, Videotape Cassettes, Films, Computer Software and Master Recording Media"
Paragraph (c)
Administrative Policy
18 May 2011 External T.I. 2011-0392441E5 F - Outils - déduction pour amortissement
In finding that small tools that the taxpayer purchased at a unit cost of less than $200 to maintain the units in a rental building (one of which...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | CCA claim was to be proportionately reduced based on personal use percentage | 64 |
Paragraph 12(o)
Administrative Policy
6 November 2003 External T.I. 2003-0039525 F - Canadian Renewable & Conservation Expenses
A Canadian renewable and conservation expenses (CRCE) project uses landfill sites, which are injected with bacteria to produce recoverable gas. ...
| 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 Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) | CCA is not an expense incurred | 106 |
| 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 |
Class 13
Cases
The Queen v. Mount Robson Motor Inn Ltd., 81 DTC 5188, [1981] CTC 345 (FCA)
When improvements (such as 2 frame buildings and pavement for a parking area) are constructed by a tenant, they normally become the property of...
The Queen v. Saskatoon Drug & Stationery Co. Ltd., 78 DTC 6396, [1978] CTC 578 (FCTD)
The taxpayer acquired a leasehold interest in a drug store. It was found that the terms of the lease were such that a prospective sub-lessee would...
See Also
Plan A Leasing Ltd. v. The Queen, 76 DTC 6159, [1976] CTC 261 (FCTD)
An individual ("Lunenfeld") conveyed a building to a corporation ("159 Bay") and conveyed the underlying land to a second corporation ("Great...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 3 | 84 |
Rudnikoff v. The Queen, 75 DTC 5008, [1975] CTC 1 (FCA)
"[W]hile the general rule ... is that a substantial building becomes a part of the land and belongs to the owner of the land, this situation may...
Administrative Policy
IT-464R "Capital Cost Allowance - Leasehold Interest"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 0 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.1) | 0 |
Class 14
Cases
Bomag (Canada) Ltd. v. The Queen, 81 DTC 5085, [1981] CTC 156 (FCTD), aff'd 84 DTC 6363, [1984] CTC 378 (FCA)
The cost to the taxpayer (namely, the sum of $108,000 paid by it to terminate a previous franchise arrangment) of obtaining a contractual right to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Purpose/Intention | 51 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost of obtaining surrender of previous contact was part of cost of new contract | 36 |
MNR v. Canadian Glassine Co. Ltd., 76 DTC 6083, [1976] CTC 141 (FCA)
Payments made by the taxpayer to reimburse a pulp company ("Anglo-Canadian") for the costs of installing pipelines connecting the taxpayer's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | 103 |
Capital Management Ltd. v. MNR, 68 DTC 5041, [1968] CTC 29 (SCC)
The taxpayer purchased, from an affiliated company, the right to manage two mutual funds (which would entitle it to earn a quarterly fee of 1/8 of...
Metropolitan Taxi Ltd. v. MNR, 67 DTC 5073, [1967] CTC 88 (Ex Ct), aff'd 68 DTC 5098, [1968] CTC 163 (SCC)
$70,000 of the $104,000 purchase price paid by the taxpayer for a taxicab business was allocated by it to 14 taxicab licences which had been...
Investors Group v. MNR, 65 DTC 5120, [1965] CTC 192 (Ex Ct)
In finding that the purchase price paid for the acquisition of rights under a sales management agreement (pursuant to which the vendor had...
Mandrell Industries, Inc. v. M.N.R., 65 DTC 5142, [1965] CTC 233 (Ex Ct)
The taxpayer, a manufacturer of geophysical equipment, had granted an affiliated company the exclusive right to market its products for five years...
MNR v. Kirby Maurice Co. Ltd., 58 DTC 1033, [1958] CTC 41 (Ex Ct)
A proprietorship was granted the exclusive right to market the products of a manufacturer of vacuum cleaners in the County of York pursuant to an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | purchaser exercising no independent judgment | 148 |
Golden Arrow Sprayers Ltd. v. MNR, 61 DTC 1185, [1961] CTC 318 (Ex Ct)
A right to use the patents of an individual was a Class 14 property to the corporation that acquired those rights. However, the capital cost was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | 60 |
See Also
Rocheleau v. The Queen, 2010 DTC 1016 [at 2615], 2009 TCC 484 (Informal Procedure)
A contract under which the taxpayer made a total contribution of $25,500 in consideration for a company agreeing to pay to the taxpayer 5.5% of...
Gouchee v. MNR, 67 DTC 203 (TAB)
In finding that a taxpayer, who had acquired assets of a business together with the right to use the name "V.W. Body & Paint Shop" was not...
No. 728 v. MNR, 61 DTC 34 (TAB)
In connection with a purchase by the taxpayer from its president and general manager of the insurance business previously carried on by him, the...
No. 678 v. MNR, 60 DTC 45 (TAB)
The assets of a proprietorship ("Beaver Oil Company") purchased by the taxpayer included "the good will of Beaver Oil Company and the exclusive...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) | 56 |
Administrative Policy
7 November 2011 Internal T.I. 2011-0424641I7 F - Right to cut Christmas trees
A taxpayer purchased the right to cut, over a period of 10 years, Christmas trees on another taxpayer's land for a lump sum payable over 4 years....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Timber Resource Property | right to cut Christmas trees was not a timber resource property | 93 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(e) | Christmas trees are not “timber” | 184 |
17 July 2018 External T.I. 2018-0747311E5 - Geothermal Energy Project
After noting that different licence, lease and permit fees may be imposed under the applicable provincial law in connection with a geothermal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1219 - Subsection 1219(1) - Paragraph 1219(1)(h) | completing an exploratory geothermal well ultimately used in production generates Class 43.1 costs, not CRCE | 264 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(viii) | inclusion of cost of completing geothermal exploratory wells in fact used in production | 95 |
30 July 2015 External T.I. 2014-0552041E5 F - Permis XXXXXXXXXX
Government permits granted to the taxpayer are renewable each year on the payment of $X. In finding that the permits were eligible capital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | renewable government licences were ECP, not Class 14 | 49 |
30 May 2013 External T.I. 2013-0487301E5 - 3P Project
The query noted that para. 12 of 2006-0218781R3 stated:
In return for the grant of the Concession, the Partnership will agree to construct the...
25 January 2007 External T.I. 2006-0199451E5 - License Agreement
Amounts that the taxpayer was required to reimburse a school board for in respect of a licensed space in a school that was constructed by the...
2007 Ruling 2006-0218781R3 - XXXXXXXXXX
A Canadian public corporation ("Z Co"), as LP, and newly-incorporated CBCA grandchild subsidiary ("GP") of Z Co, as GP, form the Partnership. The...
16 November 1994 Internal T.I. 9414677 - FILM RIGHTS
Even though it may be likely that a CRTC licence issued for a period of five years will be extended or renewed following the expiration of that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Capital Asset v. Inventory | 72 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) | CRTC representation costs instead part of cost of licence | 31 |
9 November 1994 Internal T.I. 9425187 - PLANT BREEDERS RIGHTS ACT
Rights granted pursuant to the Breeders Act do not constitute a franchise, concession or licence for the purposes of Class 14 because the effect...
7 September 1992 T.I. (Tax Window, No. 24, p. 7, ¶2189)
Most computer software acquired for use internally in a business is included in Class 12(o). However, a contractual right or licence of a capital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 | 49 |
20 August 1992 T.I. (Tax Window, No. 23, p. 14, ¶2170)
A contractual right or licence of a capital nature to buy and resell, to sublet or to otherwise market computer software is not a right or licence...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 | 54 |
14 May 1990 T.I. AC59728 [bare right to income not a concession]
A payment made by a public company to acquire a contractual right to a 50% share in a partnership's net proceeds from the purchase, processing and...
IT-283R2 "Capital Cost Allowance - Video Tapes, Videotapes Cassettes, Films, Computer Software and Master Recording Media"
A contractual right or licence of a capital nature to buy and to resell, to sublet or to otherwise market computer software is not a right or...
IT-477 "Capital Cost Allowance - Patents, Franchises, Concessions and Licences," consolidated October 2001
15. The provisions of a franchise, concession or licence concerning renewals or extensions following the original term are relevent in...
Articles
Shane Onufrechuk, Warren Pashkowick, "Tax Considerations of Major Construction Projects", 2014 Conference Report, Canadian Tax Foundation, 10:1-35.
Construction costs incurred for Class 14 licence (p. 10:18)
[The project] contract states that in exchange for granting the concession, the P3...
Scheuermann, "Income and Commodity Tax Aspects of Acquiring and Exploiting Technology", 1991 Conference Report, c. 45.
Class 14.1
See Also
Agence du revenu du Québec v. Unidisc Musique Inc., 2021 QCCA 393
The respondent (Unidisc) bought master recordings of music, i.e., the magnetic tapes containing the original recordings of the songs or other...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(j) | the portion of the value of master recordings that was tangible property was not demonstrated by the taxpayer | 269 |
| Tax Topics - General Concepts - Onus | failure to lead evidence as to allocation meant that the taxpayer was stuck with the ARQ allocation | 143 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | misunderstanding by the ARQ of the Copyright provisions supporting its reassessment did not invalidate it | 152 |
Perron-Ali v. The Queen, 2021 TCC 6 (Informal Procedure)
A couple wanted to start investing in rental real estate but, in the year prior to that in which they started looking seriously at potential...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training | costs of training on how to invest in real estate were capital expenditures | 190 |
Unidisc Musique Inc.v. Agence du revenu du Québec, 2019 QCCQ 1818, rev'd 2021 QCCA 393
Unidisc bought master recordings of music (“masters”), i.e., the magnetic tapes containing the original recordings of the songs or other music...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(j) | purchase cost of master music recordings was for Class 8(j) tangible property | 368 |
Administrative Policy
27 November 2018 CTF Roundtable Q. 15, 2018-0780011C6 - Class 14.1
Class 14.1 depreciable property references “property” of the taxpayer. CRA confirmed that this does not have the effect of disqualifying...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(35) - Paragraph 13(35)(a) | capital expenditures not giving rise to property are deemed to be goodwill property | 106 |
19 July 2018 External T.I. 2017-0727041E5 - Legal and accounting fees - aborted share purchase
Does the position in 2002-0151405, respecting an aborted attempt to acquire shares, that “these fees qualify as eligible capital expenditures if...
9 November 2005 Internal T.I. 2005-0154301I7 F - Choix concernant les immobilisations admissibles
On a sale of a residential care facility, the taxpayer allocated substantially all of the sale price to operating agreements with the Quebec...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(1.01) | cost of property acquired can be nil | 113 |
Paragraph (a)
See Also
Commissioner of State Revenue v Placer Dome Inc., [2018] HCA 59
Whether the acquisition by Barrick Gold Corporation ("Barrick") of another Canadian public company, namely, Placer Dome Inc. ("Placer") triggered...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | discounted cash flow valuation undervalued resource lands and residual valuation overstated goodwill | 342 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | protean nature of property concept | 491 |
Class 16
Paragraph (e)
Administrative Policy
16 June 2010 External T.I. 2009-0344861E5 F - Actifs de la Catégorie 16
A taxable Canadian corporation acquires pick-up trucks for short-term lease (not exceeding 30 days in any 12-month period) to lessees for personal...
Class 17
Administrative Policy
27 March 2014 External T.I. 2014-0520941E5 F - Industrial mineral mine and related expenditures
The costs of a temporary access road to a quarry would not be considered to be in respect of a "specified temporary access road" as defined in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) - Paragraph 13(7.5)(b) | access road deemed to have been "acquired" | 201 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(g) | ordinary meaning of "mineral" | 43 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Start-Up and Close-Down Expenditures | expenditures deductible where incurred prior to acquisition decision | 154 |
14 February 2005 External T.I. 2005-011130
Discussion of criteria to be satisfied in order for ski trails to qualify as surface construction for purposes of paragraph (c) of Class 17.
28 June 2001 External T.I. 2001-0068425 - CLEARING LAND-GOLF COURSE
The creation of greens, tees and fairways for a golf course would constitute "surface construction" and, therefore, would qualify for inclusion in...
Paragraph 17(c)
Cases
The Queen v. Mont-Sutton Inc., 99 DTC 5733, [1999] F.T.R. 33467 (FCA)
Létourneau J. A. found that the types of surface construction referred to in Class 17(c) had the following characteristics: first the land which,...
Administrative Policy
18 December 2013 External T.I. 2013-0479421E5 F - Section 30 and Cranberry Farm
In converting lands to a cranberry farm, there would need to be a reasonable allocation of the relevant costs between the cost of installing a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | initial cranberry plant planting is a cost of land | 94 |
| Tax Topics - Income Tax Act - Section 30 | costs of clearing, levelling and draining lands, but not of constructing basins, for a cranberry farm are currently deductible | 136 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 | costs of constructing irrigation pond included | 33 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | irrigation system included, drainage costs deductible under s. 30 | 79 |
8 January 2008 Internal T.I. 2007-0254881I7 F - Amortissement d'une aire de camping
In finding that a campground should be included in Class 17(c), the Directorate stated:
2000-0029597 … in light of the Mont-Sutton decision,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(17) | campground, if a business, not subject to leasing property restriction rule | 108 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 1 | septic tanks are structures | 167 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 | swimming pool is a water storage tank | 98 |
15 July 2004 Internal T.I. 2004-0071101I7 F - Site de neiges usées
A corporation operating a snow removal business constructed a waste snow storage site to store waste snow and allows water to flow in culverts...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 - Paragraph (e) | tank for holding waste snow melt and decanting the pollutants was a storage tank (Class 6(e)) | 202 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(c) | tank for holding waste snow melt and decanting the pollutants was not a building used in processing | 113 |
Class 22
Cases
Lindwest Holdings Ltd. v. The Queen, 88 DTC 6482, [1988] 2 CTC 287 (FCTD)
Equipment which both was "designed" for the purpose of excavating or moving earth and rock (Class 22) and which was acquired for logging...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 44 |
The Queen v. Nomad Sand & Gravel Ltd., 87 DTC 5343, [1987] 2 CTC 112 (FCTD)
A sand and gravel pit was not a "mine", and front end loaders used in the gravel pit operation accordingly were Class 22, rather than Class 10...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 28 |
Class 24
Administrative Policy
IT-336R "Pollution Control Property"
27 September 1991 T.I. (Tax Window, No. 10, p. 18, ¶1485)
The Minister of the Environment has the authority only to make the determination referred to in paragraph (b)(iv).
27 September 1991 Memorandum (Tax Window, No. 10, p. 18, ¶1487)
Equipment used to provide pollution reduction services to oil and gas lease holders will not qualify for inclusion in Class 24 unless the...
Class 26
Administrative Policy
7 June 2017 CPTS Roundtable, 2017-0695131C6
Most modern refinery catalysts have a useful life of 1 to 3 years and are disposed of at the end of this period. Is CRA still of the view that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition | Q.1 - Daishowa extends beyond reforestation and reclamation obligations only on a case-by-case basis | 213 |
| Tax Topics - Income Tax Act - Section 66 - Subsection 66(15) - Canadian Resource Property - Paragraph (d) | Q.2 - a Canadian resource royalty interest requires a right to “take production” | 135 |
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | Q.3 - Canada-U.K. Treaty does not exempt shares deriving their value from Canadian oil and gas licences – even where the Canadian business is carried on “in” them | 193 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | Q.4 - by analogy to mining, hydrocarbons may be similar properties | 348 |
| Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(1) | Q.5 - normal course dispositions of oil and gas properties generally are not of a separate business | 131 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) | Q.5 - application of Scales test to determining whether there is a separate business | 224 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 49 | Q.8 - taxpayers generally have the documentary evidence on hand to allocate costs between pipelines and pipeline appendages | 117 |
Class 28
Administrative Policy
November 1991 Memorandum (Tax Window, No. 12, p. 21, ¶1570)
An acquisition of equipment will not be considered a "major expansion" where it increases or recovery at a mine by more than 25% but there is no...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 41 | 26 |
Class 29
Cases
Will-Kare Paving & Contracting Ltd. v. Canada, 2000 DTC 6467, 2000 SCC 36, [2000] 1 S.C.R. 915 (SCC)
The taxpayer, which paved driveways, parking lots and small roadways, also operated an asphalt-producing plant. 75% of the output was utilized in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | 11 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | word sale should be accorded its private law meaning | 67 |
The Queen v. Donohue Normick Inc., 96 DTC 6061 (FCA)
Seventeen spare parts having a cost in excess of $1 million that the taxpayer purchased to be held until such time as identical parts in a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Capital Asset v. Inventory | 41 |
The Queen v. Coopers & Lybrand Ltd., Trustee of Hawboldt Hydraulics (Canada) Inc., 94 DTC 6541, [1994] 2 CTC 336 (FCA)
An operation of repairing and "re-manufacturing" hydraulic systems for customers (including the replacement of a part or parts of a customer's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | 94 |
Stearns Catalytic Ltd. v. The Queen, 90 DTC 6286, [1990] 1 CTC 398 (FCTD)
A stock of spare parts which the taxpayer kept on hand for potential use in the event of machine or equipment failure did not qualify as property...
Halliburton Services Ltd. v. The Queen, 85 DTC 5336, [1985] 2 CTC 52 (FCTD), aff'd 90 DTC 6320 (FCA).
Equipment which the taxpayer bolted or welded to its trucks to be used in its well-pumping operations was held to be contractor's movable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits | separate sale of well fluids | 65 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 55 | |
| Tax Topics - Income Tax Regulations - Regulation 4600 - Subsection 4600(2) | 63 |
Nova Construction Co. Ltd. v. The Queen, 83 DTC 5105, [1983] CTC 58 (FCTD)
The Act contemplates that an activity may constitute both manufacturing or processing and construction. Accordingly, it was found that an asphalt...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 90 |
See Also
Pharma Coréalis Inc. v. Agence du revenu du Québec, 2023 QCCQ 156
The taxpayer (Coréalis) which, in addition to performing R&D services, entered into “service agreements” with pharmaceutical companies (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property - Paragraph (c) - Subparagraph (c)(i) | putting drug companies' active ingredients into capsule form for clinical testing qualified as manufacturing for sale | 289 |
Adélard Soucy (1975) Inc. v. Agence du revenu du Québec, 2019 QCCQ 6956, rev'd 2021 QCCA 1050
The taxpayer custom-fabricated pieces of heavy specialized equipment at the northern mining site of one of its mining customers. In order that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(a) | a building for warming equipment qualified as “manufacturing or processing machinery or equipment” | 333 |
Coop de travailleurs en serres Belle-de-Jour v. Agence du revenu du Québec, 2019 QCCQ 6609
The taxpayer used approximately 20% of the area within greenhouses to grow cucumbers or other vegetables, or flowers, from seed for sale as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | use of greenhouses to further grow flowers before use in making floral arrangements was separate from the taxpayer’s greenhouse plant-growing farming business | 221 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Farming | use of greenhouses to further grow flowers before use in making floral arrangements did not constitute farming | 163 |
Stark International Inc. v. The Queen, 2019 TCC 248
The taxpayer (“Stark”) used three newly-constructed transformer maintenance trailers (which were 50-foot trailers (“TMT 3, TMT 4 and TMT...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property - Paragraph (c) | a use test could be applied by looking beyond the property’s immediate intended use | 235 |
Environnement Sanivac Inc. v. ARQ, 2016 QCCQ 9461
A company used somewhat modified trucks to collect dirty oils from customers. On the trucks’ return to the company premises, they would sit...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property - Paragraph (c) - Subparagraph (c)(i) | transporting trucks with decanting tanks used in M&P | 281 |
Mont-Sutton Inc. v. The Queen, 96 DTC 1472, [1996] 3 CTC 2492 (TCC)
Artificial snow-making equipment did not qualify for inclusion in Class 29.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits | 60 |
Démolition A.M. de l'est du Québec Inc. v. MNR, 93 DTC 889, [1993] 2 CTC 2447 (TCC)
The taxpayer, which derived its revenues from contracts for the demolition of buildings or other works, and from the sale of materials resulting...
Lehmann Bookbindings Ltd. v. MNR, 92 DTC 1308, [1992] 1 CTC 2766 (TCC)
The taxpayer, which bound periodicals, textbooks and other materials owned by its customers, was engaged in manufacturing or processing.
Roy Legumex Inc. v. MNR, 90 DTC 1858, [1990] 2 CTC 2389 (TCC)
Containers which were used to dry legumes in order that they could be split were found to be structures that were manufacturing or processing...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 102 |
Red Deer Adviser Publications Ltd. v. MNR, 89 DTC 520, [1989] 2 CTC 2315 (TCC)
This taxpayer sought (at p. 523) to characterize two bi-weekly or weekly publications each "as a multiple advertisement flyer consisting of...
Administrative Policy
6 June 2019 CPTS Roundtable, 2019-0816111C6
In light of the accelerated CCA rules under Reg. 1100(2), what are examples of manufacturing or processing properties in the oil and gas context? ...
7 March 2019 Internal T.I. 2018-0781511I7 F - Fabrication ou transformation
9406917 F indicated that:
photocopying activities from a photocopier equipped with a computer and the activities of assembling photocopies with a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits | commercial printing or photocopying operations may not be M&P | 160 |
15 January 2015 External T.I. 2014-0548101E5 F - Sens de "fabrication ou transformation"
In the course of a general discussion as to whether equipment used in coating steel rods with metal alloys were includible in Class 29, CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing | steel rod plating could qualify | 151 |
S4-F15-C1 - Manufacturing and Processing
Meaning of used directly or indirectly
1.52 The phrase used directly or indirectly...includes any ancillary equipment such as furniture and...
11 August 2014 Internal T.I. 2014-0528231I7 F - Dépenses en immobilisation en RS&DE
The taxpayer acquired a machine which it used as part of SR&ED to create a prototype, which in turn was used in eventually commercializing a...
7 January 2014 External T.I. 2013-0515361E5 - CCA and Manufacturing or Processing of Malt
Overview of Class 29 rules.
19 November 2013 External T.I. 2013-0510351E5 - Steel Tanks and Oak Barrels of a Winery Business
The taxpayer in 2013-0503311E5 carried on a wine-making business that involved both farming activities (i.e., growing grapes) and non-farming...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Farming | wine fermentation not farming | 247 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | grape farming and wine production separate | 173 |
| Tax Topics - Income Tax Regulations - Regulation 1104 - Subsection 1104(9) - Paragraph 1104(9)(a) | wine production not farming | 247 |
22 October 2013 External T.I. 2013-0503311E5 - Class. of steel tanks & oak barrel for CCA purpose
A CCPC wine producer whose activities include growing and purchasing, and then pressing, grapes, fermenting and aging wine, and bottling and...
3 April 2012 External T.I. 2011-0426341E5 F - Catégories 29 et 43
In 2011, a taxpayer who recycles metal acquired a new container and excavator with a shear to cut the metal, which was placed in containers...
4 June 2010 External T.I. 2010-0358811E5 F - Catégorie d'amortissement d'un moule
Would moulds be included in Class 43 even though they are specifically described in para. (d) of Class 12? CRA responded:
Although moulds are...
22 January 2009 External T.I. 2008-0290971E5 F - Bénéfices de fabrication et de transformation
An operation of the taxpayer consists of taking products, received in bulk in boxes, and dividing them up by category according to specific...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Canadian Manufacturing and Processing Profits | operation of breaking bulk packages into smaller lots for repackaging and sale was not “processing” | 166 |
21 September 1990 T.I. (Tax Window, Prelim. No. 1, p. 23, ¶1005)
RC does not consider additions of machinery and equipment to a plant under a continual expansion to meet long-term capacity objectives as...
Class 31
Cases
Vaillancourt v. The Queen, 86 DTC 6449, [1986] 2 CTC 188 (FCTD), rev'd 91 DTC 5352 (F.R.), 91 DTC 5408 (E.) (FCA)
For a property to qualify as a MURB to a taxpayer, the taxpayer must have more than one unit in the residential building. It is not sufficient for...
Johns-Manville Canada v. The Queen, 85 DTC 5373, [1985] 2 CTC 111, [1985] 2 S.C.R. 46
Estey, J. stated, obiter, that if it were not for the addition of Class 26 to Schedule II, expenditures for catalysts would be currently deductible.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | recurring purchase and "consumption" of land | 109 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | presumption of relief for business expenditures | 136 |
Administrative Policy
86 C.R. - Q.25
Notwithstanding Vaillancourt, RC will continue to follow IT-367R2, para 4.
IT-304R "Capital Cost Allowance - Condominiums"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 68 | 31 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 32 | 0 |
Class 32
Administrative Policy
IT-304R "Capital Cost Allowance - Condominiums"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 68 | 31 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 31 | 0 |
Class 34
Administrative Policy
10 August 1994 External T.I. 9405135 - WIND TURBINES
A wind turbine installed by Company A on its own property and used to displace electricity which would otherwise be purchased from a utility could...
2 February 1994 Internal T.I. 9400307 - HYDRO ELECTRIC EQUIPMENT FOR A MINE
Property described in Regulation 1102(9) must be included in Class 41 and cannot be included in Class 34.
Class 39
Cases
Will Kare Paving & Contracting Ltd. v. The Queen, 98 DTC 6203 (FCA)
The taxpayer purchased an asphalt plant with the expectation that it would sell up to 40% of the production of the plant to third parties and use...
Class 41
Administrative Policy
November 1991 Memorandum (Tax Window, No. 12, p. 21, ¶1570)
An acquisition of equipment will not be considered a "major expansion" where it increases recoveries at a mine by more than 25% but there is no mill.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 28 | 27 |
Class 43
See Also
Ateliers Ferroviaires de Mont-Joli Inc. v. The Queen, 2011 DTC 1358 [at 2006], 2011 TCC 352
The taxpayer's parent company ("Séma") was in the business of providing consulting and maintenance services to the Canadian National Railway...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property | 283 |
Scieri St-Elzéar Inc. v. The Queen, 2003 DTC 14 (TCC)
A fire protection system and a steam heating system used in the taxpayer's lumber plant were includable in Class 43. The fire protection system...
Administrative Policy
4 June 2010 External T.I. 2009-0324801E5 F - catégorie 43
General discussion as to potential qualification of moulds, overhead crane and crane for inclusion in Class 43 or 29, whereas a forklift truck is...
16 September 2008 External T.I. 2008-0268021E5 F - Catégorie 43 - poinçon hydraulique
A company specializing in the manufacture of PVC profiles and the design of door and window systems, sold its profiles and window and door...
23 June 2005 Internal T.I. 2005-0118191I7 F - Améliorations faites à un séchoir à bois
The taxpayer, which operated a sawmill, made alterations after February 25, 1992 to a lumber kiln that it had acquired before that date, in order...
Class 43.1
Administrative Policy
17 January 2020 External T.I. 2017-0685341E5 - Tax Comparison of the FIT & Net Metering Programs
Under the Feed-in Tariff and microFIT programs (the “FIT/micro-FIT Programs”) administered by the Ontario Power Authority (the “OPA”), a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | a credit generated by a business under the Ontario Net Metering Program is only income when applied, and is offset by a deduction for the electricity consumed | 261 |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | credits received under the Ontario Net Metering Program respecting electricity generated for personal consumption are not income | 210 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(25) | application of exception to the specified energy property rules to equipment used in the Ontario Feed-in Tariff program | 364 |
16 May 2017 External T.I. 2016-0670661E5 - Capital Cost of De-icing Equipment
New aluminum shingles with an electric cable (the “Equipment”) will be attached over existing asphalt shingles on the portion of a roof...
6 May 2014 Internal T.I. 2014-0521261I7 - Biomass Electrical Facility Owned by First Nation
General discussion respecting a general biomass-fuelled electricity generating facility, which would be described in Class 43.1 and therefore...
6 July 2012 External T.I. 2012-0444401E5 - Definition of “wood waste” in Class 43.2
"[I]t has been our longstanding view that wood pellets manufactured from inputs meeting the definition of 'wood waste' in subsection 1104(13) of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1104 - Subsection 1104(13) - Wood waste | 104 |
3 April 2013 External T.I. 2012-0469941E5 - CCA class and rate
Waste water treatment equipment is not eligible under subparagraphs (a)(i) to (a)(v) or Class 43.1, and consequently is not eligible for inclusion...
11 May 2009 External T.I. 2008-0276761E5 F - Class 43.1 and 43.2
A wood waste fuelled heat production system and ground source heat pump likely could qualify for inclusion in Class 43.2. CRA stated:
in general,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1104 - Subsection 1104(13) - Eligible Waste Fuel | wood pellets are wood waste | 50 |
15 November 2006 External T.I. 2006-0190041E5 F - Biogas / Codigestion Process / Produced for Sale
Opco, which utilizes biomass through anaerobic digestion processes in order to produce biogas (containing significant methane) will install a...
Articles
Tim Hay, "Federal Income Tax Incentives for Independent Power Generation: Accelerated Capital Cost Allowance of Class 43.1 Assets and 100% Write-Off of Canadian Renewable and Conservation Expenses", Business Vehicles, Vol, VII, No. 3, 2001, p. 342.
Paragraph (d)
Subparagraph (d)(v)
Administrative Policy
21 December 2005 External T.I. 2005-0150711E5 F - Wind turbines - Class 43.1
CRA described a structure under which the operator can satisfy the requirement of being the owner of the depreciable property (the wind...
Subparagraph (d)(vii)
Subparagraph (d)(viii)
Administrative Policy
17 July 2018 External T.I. 2018-0747311E5 - Geothermal Energy Project
CRA indicated that the costs of both drilling and (except as noted below) completing exploratory wells for a geothermal project generally qualify...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1219 - Subsection 1219(1) - Paragraph 1219(1)(h) | completing an exploratory geothermal well ultimately used in production generates Class 43.1 costs, not CRCE | 264 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14 | if renegotiation, further permit fees may generate Class 14 property | 125 |
11 January 2011 External T.I. 2010-0385231E5 F - Class 43.2
The Corporation will plant fast-growing trees, such as poplars, on land acquired by it and fertilized by it with sludge from municipal water...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(xiii) | digester producing gas from municipal sludge for thermal production could qualify | 196 |
6 November 2003 External T.I. 2003-0039525 F - Canadian Renewable & Conservation Expenses
A corporation implementing a Canadian renewable and conservation expenses (CRCE) project that uses landfill sites, and injects them with bacteria...
| 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 Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(a) | CCA is not an expense incurred | 106 |
| 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 |
Subparagraph (d)(xiii)
Administrative Policy
11 January 2011 External T.I. 2010-0385231E5 F - Class 43.2
The "Corporation" acquires sludge from municipal water treatment plant which, through processing by a digester, produces gas and digestate. The...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 43.1 - Paragraph (d) - Subparagraph (d)(viii) | biomass boiler using wood chips from poplars grown by taxpayer did not qualify | 215 |
Class 43.2
Administrative Policy
S3-F8-C1 - Principal-business Corporations in the Resource Industries
Overview: Class 43.1 and 43.2
1.9 Class 43.1 and 43.2 of Schedule II to the Regulations provide an accelerated CCA for investments in certain...
10 February 2015 External T.I. 2014-0549331E5 F - Borne de recharge catégorie d'amortissement
An employer acquired charging stations, which were used only to recharge the employer's electric vehicles that were used by its employees for...
21 October 2014 External T.I. 2014-0543041E5 - Class 43.2 - Photovoltaic System
General discussion of the considerations applicable to claiming CCA on solar photovoltaic systems.
21 August 2013 External T.I. 2013-0486441E5 - CCA and ITCs on anaerobic digester
Regarding anaerobic digesters (machines for extracting methane from manure, a byproduct of which is fertilizer), CRA stated:
Property of a...
29 February 2012 External T.I. 2012-0435151E5 - Installation of Solar Panels
Discussion of CCA rules applicable to solar photovoltaic equipment.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | 162 |
Class 45
Administrative Policy
5 October 2007 APFF Roundtable Q. 26, 2007-0243381C6 F - Classification des équipements de bureautique
(a) The questioner pointed out that equipment manufacturers often sell products at a minimum price and charge a premium for supplies (e.g....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Equipment | 93 |
Class 46
Administrative Policy
29 October 2013 External T.I. 2013-0507121E5 - Website costs
Determining whether website costs are in the nature of income or capital should entail an analysis of each component of the site. The...
Class 49
Administrative Policy
7 June 2017 CPTS Roundtable, 2017-0695131C6
CRA noted that, as per IT-482, an attachment to a pipeline is not an integral and component part of the pipeline, and is considered to be separate...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition | Q.1 - Daishowa extends beyond reforestation and reclamation obligations only on a case-by-case basis | 213 |
| Tax Topics - Income Tax Act - Section 66 - Subsection 66(15) - Canadian Resource Property - Paragraph (d) | Q.2 - a Canadian resource royalty interest requires a right to “take production” | 135 |
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | Q.3 - Canada-U.K. Treaty does not exempt shares deriving their value from Canadian oil and gas licences – even where the Canadian business is carried on “in” them | 193 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | Q.4 - by analogy to mining, hydrocarbons may be similar properties | 348 |
| Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(1) | Q.5 - normal course dispositions of oil and gas properties generally are not of a separate business | 131 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) | Q.5 - application of Scales test to determining whether there is a separate business | 224 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 26 | Q.7 - refinery catalysts are Class 26 property | 87 |
Class 50
Administrative Policy
29 November 2022 CTF Roundtable, Q.8
Commercial crypto-asset mining operations often involve the use of several graphics processing units (GPUs) or application-specific integrated...
19 September 2013 External T.I. 2013-0498331E5 F - Catégories 29 et 50
After noting that some computer equipment would qualify for inclusion in Class 29 if acquired before 2016, CRA stated:
[C]omputer equipment is...