Words and Phrases - "similar business"
S3-F3-C1 - Replacement Property
Meaning of similar business
1.41 The term similar business as used in the phrase “the same or a similar business” or “from that or a similar business” in ¶1.33(c) is generally interpreted in a reasonably broad manner. In this respect, two businesses will be considered to be similar if they both fall within the same one of the following categories:
- merchandising - retailing and wholesaling;
- farming;
- fishing;
- forestry and forest products;
- extractive industries, including refining;
- financial services;
- communications;
- transportation;
- construction, including subcontracting; and
- manufacturing and processing.
1.42 With regard to the categories referred to in ¶1.41, where a business falls into more than one, a similar business will be one that falls into any one of these categories in which the business operates.
S3-F3-C1 - Replacement Property
Similar business categories
1.41 …[T]wo businesses will be considered to be similar if they both fall within the same one of the following categories:
- merchandising - retailing and wholesaling;
- farming;
- fishing;
- forestry and forest products;
- extractive industries, including refining;
- financial services;
- communications;
- transportation;
- construction, including subcontracting; and
- manufacturing and processing.
1.42 … [W]here a business falls into more than one, a similar business will be one that falls into any one of these categories in which the business operates.
Example 5
A plywood plant may fit into the forestry and forest products category, and also into the manufacturing and processing category. As a result, if the plywood plant is sold, any business that also falls under the forestry and forest products or manufacturing and processing categories will generally be considered a similar business … .
1.43 A taxpayer who changes from one business category to another but continues to deal in the same product will normally be considered to be in a similar business. …
Similar services businesses
1.44 Service industries, such as hotels, restaurants, repairs, professional services, barber and hairdressing shops, funeral parlours, laundries, real estate agencies, tourism, and entertainment, are not included in the general business categories referred to in ¶1.41, because most of these industries are too varied and different to permit categorization. … [S]imilar business will generally be interpreted in a reasonably broad manner.