Words and Phrases - "tangible property"
5 October 2015 Internal T.I. 2014-0522241I7 - T1135: Mineral rights situated outside of Canada
Is the right to mine minerals situated outside of Canada considered “real property” for T1135 reporting purposes, and if so how is the “cost amount” for such property determined? CRA responded:
The expression “tangible property… is understood to include real property, which generally refers to land and rights issuing out of, annexed to and exercisable within or about land (for example, a fee simple in land and a profit-à-prendre in respect of minerals). As such…the right… would be considered tangible property that is specified foreign property for purposes of section 233.3… .
…[T]he CRA has a longstanding position that the cost amount of foreign resource property is nil. Therefore, in determining whether a taxpayer is a reporting entity for T1135 purposes, the mineral rights have a cost amount of nil. However, in our view, if a taxpayer has sufficient other specified foreign property to exceed the $100,000 threshold, the CRA could require that a more useful amount be reported (for example, acquisition cost).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount | nil cost amount for foreign resource property | 39 |
Erris Promotions Ltd. v. Commissioner of Inland Revenue (2003), 6 ITLR 364 (NZ HC)
While the medium which carries software may be tangible property, the actual software itself is not. Because software is not tangible property, it did not qualify as depreciable property under the Tax Administration Act 1994 (New Zealand).