Work was carried out on some of the woodlots of a taxpayer, with a forest producer's certificate under s. 120 of the Québec Forest Act and also forest management plans issued by the Minister of Natural Resources and Wildlife, in accordance with those plans, was not performed on a timely basis for other lots - and some woodlots did not require any work under the plan.
In the course of a response describing the requirements for a rollover under s. 73(3) (or 70(9), CRA
- noted the distinction in IT-373R2, para. 14 (approved in Desrosiers Estate) between a woodlot operation that was a farm and a logging operation, and that if the correspondent’s statement that “the land was used principally in a logging business” was correct, then the rollover would not be available,
- discussed in detail the requirements of the 17 Quebec regional agencies for forest management plans, indicated that “a forest management plan certified as complying with the regulations of a regional agency for the development of private forests by a forest engineer would be a plan that is approved as complying with the requirements of a provincial program for the sustainable management and conservation of forests for the purposes of paragraph 7400(1)(a), and
- stated that the “engaged” test “may be satisfied with respect to a woodlot even if no work has been done, as long as the forest management plan does not require any work or task to be performed.”