Subsection 1104(2)
Computer Software
Administrative Policy
7 October 1991 T.I. (Tax Window, No. 10, p. 17, ¶1506)
A right or licence to use computer software includes any right or licence for a limited or unlimited period to use the computer software for commercial exploitation, including the right to reproduce software, the right to use it internally, the right to sublicence it, the right to copyright protection or the right to use a trademark in respect of it.
Gas or Oil Well Equipment
See Also
Terroco Industries Ltd. v. MNR, 93 DTC 1 (TCC)
A 10-wheel truck which had been especially adapted for the purpose of serving as an integral part of a hot oil unit used for heating oil and pumping it under pressure into wells in order to melt paraffin accumulations could not be considered to have been "designed for use in highways or streets" (Regulation 4600(2)(e)) and instead was "equipment ... used in a gas or oil field in the production therefrom of natural gas or crude oil" (definition of "gas or oil well equipment" in Regulation 1104(2)).
Thermal Waste
Administrative Policy
29 December 2014 T.I. 2014-0547911E5 - FTS renunciations
Would a particular application in a "waste heat to power project" qualify as a Class 43.1 cost so that it would also qualify as "Canadian renewable and conservation expense" in Reg. 1219? After referring to the "thermal waste" definition in Reg. 1104(13), CRA stated:
the waste heat energy extracted from a calcination system which would otherwise be vented to the atmosphere should qualify as "thermal waste".
Subsection 1104(5) - Mining
Paragraph 1104(5)(a)
See Also
Atco Electric Ltd. v. The Queen, 2007 DTC 974, 2007 TCC 243
The Court rejected the position of the Crown that the furthest point at which sub-bituminous coal was not beyond its equivalent of the prime metal stage was when it was placed on the reclaim pile, just after having gone through the primary crusher, and accepted the position of the taxpayer that this point was reached later in the crushing process when the coal had been pulverized, just before being introduced as fuel into the generation stations' combustion chamber to manufacture electricity.
Subsection 1104(9) - Manufacturing or Processing
Paragraph 1104(9)(a)
Administrative Policy
19 November 2013 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 activities (i.e., producing wine for sale). Its fermentation tanks and barrels were considered to likely qualify for class 29 purposes as property used primarily in the manufacturing or processing of goods for sale. In clarifying that the exclusion in Reg. 1104(9)(a) of "farming" from "manufacturing or processing" did not apply, CRA stated:
[A] farmer or a farming corporation may carry on activities that, if carried on by another person, would be considered to be processing of farm products rather than farming. Some examples are: aging of cheese, plucking of chickens, cleaning, polishing and treating of beans, or cleaning sorting, grading and spraying of eggs. …[F]arming does not include the manufacturing or processing of agricultural products unless such activities are incidental to the farming activity. …[G]enerally where a farmer or farming corporation separates the activities of farming and the processing of farm products, the CRA will essentially consider the processing activity to be a distinct business from that of farming provided that there is a clear delineation of the income from each business activity, and that the income from the processing business is properly calculated and is not eligible for any of the special sections in the Act dealing with income from a farming business (such as the cash method of computing income in section 28…).
Paragraph 1104(9)(c)
Cases
Nova Construction Co. Ltd. v. The Queen, 85 DTC 5594, [1986] 1 CTC 68 (FCA)
The taxpayer's "blackmobile" which produced asphaltic concrete which was used by the taxpayer to pave roads at various distances from the blackmobile, was held to be used in the taxpayer's construction business.
Subsection 1104(12) - Amusement Parks
Administrative Policy
17 November 1997 T.I. 972234
Although an amusement park is usually found outdoors, it is possible for it to be contained inside a building.
"Although three types of activities are described in the definition ... in our view, the word 'and' in amusement, rides and audio-visual attractions' is a joint and several 'and', such that it is not required that all three activities be permanently situated in a park in order for the place to qualify as an amusement park."
Tennis courts, golf courses and fishing ponds are likely to qualify as property used in connection with an amusement park. A miniature golf course potentially may qualify.
Subsection 1104(13) - Classes 43.1 and 43.2 — Energy Conservation Property
Wood waste
Administrative Policy
6 July 2012 T.I. 2012-0444401E5
In response to a question as to whether forest biofibre (as defined in the Forest Resources Disposition Directive of the Ontario Ministry of Natural Resources, and including cull and salvage trees, and stands of unmerchantable trees) qualified as wood waste, CRA stated:
Generally...wood waste is considered to be a by-product of activities directly associated with the forest industry and the manufacture of wood product and does not include plants grown solely for the purpose of combustion to produce heat or electrical energy....
In the summary, it indicated that not all biofibre would be wood waste.