Paragraph 20(1)(a) - Capital cost of property
Revising Claims
Cases
Mattabi Mines Ltd. v. Ministry of Revenue (Ontario), [1988] 2 CTC 294, [1988] 2 S.C.R. 175
The taxpayer, which first made a request at trial that it be permitted CCA claims for Ontario purposes in computing its income for 1974 in the event that an investment tax credit should be found to be unavailable, was precluded from doing so in light inter alia of the fact that to permit such a claim would reduce the available level of claims for its 1975 and 1976 taxation years, which were statute-barred. [C.R.: 20(1)(n)]
Administrative Policy
13 March 2012 T.I. 2012-0432111E5
after adverting to the previous withdrawal of its position that joint venture income could be computed as if the joint venture had a separate fiscal period (see 2011-042958), and the resulting requirement that income for the "stub period" be included in income for the first taxation year commencing after March 2, 2011, , CRA stated that
For purposes of calculating the net income for the stub period in accordance with the revised JV administrative policy, the CCA would be allowed based on the period of the incremental income inclusion, as long as all the stub period income is reported on the JV participant's return. For example, if in the case where there was a 12 month period and a 6 month stub period, the CRA recommends that the CCA be computed separately for the 12 month period and 6 month period (i.e., not simply based on an 18 month period).
28 July 1995 T.I. 951955 (C.T.O. "IT-315")
Respecting the acquisition of shares of a corporation that is financed by interest-bearing debt issued by the purchaser to the vending shareholder, RC stated that "the policy expressed in IT-315 is applicable not only to interest on funds borrowed by a taxpayer to finance its share of acquisition ... but also to interest on the unpaid portion of the purchase price of the shares."
88 C.R. - Q.44
Where RC reviews an acquisition of a building which occurred 10 years previously and determines that its capital cost was $50,000, rather than the $200,000 which has been claimed by the taxpayer, then the revised capital cost of $50,000 will be reduced by the actual CCA deducted in each statute-barred year to arrive at a revised UCC opening balance of the class for the first non-statute barred year. Where the revised UCC balance at that time is negative, the recapture will be included in the taxpayer's income.
IC 84-1 "Revision of Capital Cost Allowance Claims and Other Permissive Deductions"
10. Where a taxpayer requests a revision of capital cost allowance claimed in a taxation year for which a notification that no tax is payable had been issued (e.g. because of a non-capital loss in that year, the application of a non-capital loss of another year, or the fact that income was exempt from tax in that year), such request will be allowed provided there is no change in the tax payable for the year or any other year filed, including one that is statute barred, for which the time has expired for filing a notice of objection. Such request will not be allowed, however, where...the Minister has issued a notice of determination pursuant to subsection 152(1.1). A taxpayer who wishes to revise the capital cost allowance in a year for which a notice of determination has been issued should do so within 90 days from the day of mailing the notice of determination for that year.
Paragraph 20(1)(b) - Cumulative eligible capital amount
Administrative Policy
16 November 89 T.I. (April 90 Access Letter, ΒΆ1169)
The deduction in s. 20(1)(b) cannot be applied to income from property.