Words and Phrases - "freight"

a
86
b
44
c
76
d
50
e
38
f
31
g
18
h
14
i
73
j
2
k
2
l
32
m
56
n
25
o
38
p
80
q
3
r
76
s
89
t
46
u
15
v
9
w
23
y
2

30 July 2002 External T.I. 2002-0121435 F - categorie 16 - remorquage

Summary Under
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 16 - Paragraph 16(g)
towing of heavy vehicles and buses constitutes hauling freight

A company operating a heavy vehicle and bus towing business acquires new and used trucks and converts them to tow trucks by installing winch equipment and hydraulic towing loaders. Regarding whether the costs should be added to Class 16, CCRA indicated:

  • The modifications or equipment added could only go into Class 16 if they formed an integral part of the truck or trailer rather than being attached to a trailer.
  • The referenced gross vehicle weight rating was “the value specified by the vehicle manufacturer as the loaded weight of a single vehicle,” so that the actual gross weight of the vehicles was not being referenced.
  • “Hauling” was “broad enough to include the towing of vehicles from one place to another and “heavy vehicles or buses constitute ‘freight’ according to the current meaning of this term,” so that “the towing of heavy vehicles and buses constitutes the hauling of freight for the purposes of Class 16.”
Words and Phrases
hauling freight