Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Requesting a change to the law regarding pollution abatement equipment and CCA
Position: Referred the matter to Finance.
Reasons: Tax policy is the responsibility of the Department. of Finance.
XXXXXXXXXX
Dear XXXXXXXXXX:
I am replying to your letter of July 20, 1998, concerning your constituent, XXXXXXXXXX who has requested changes to the capital cost allowance provisions of the Income Tax Act for pollution abatement equipment.
XXXXXXXXXX has correctly noted that the Income Tax Act presently allows farmers to claim enhanced rates of capital cost allowance in respect of certain pollution abatement equipment. If they otherwise qualify, the cost of the equipment acquired before 1999, can be expensed over a three year period. To qualify for this treatment, generally speaking, the taxpayer must have acquired the pollution equipment primarily for the purpose of preventing, reducing or eliminating pollution from operations carried on by them at a site in Canada at which operations have been carried on by them since before 1974.
XXXXXXXXXX has asked that the enhanced capital cost allowance provisions be extended to all pollution abatement systems, regardless of how long the farmer has been in business.
As the Department of Finance is responsible for matters of tax policy, I have sent a copy of your letter to the Minister of Finance, the Honourable Paul Martin, P.C., M.P, for his consideration.
I wish to thank you for bringing this matter to my attention.
Yours sincerely,
Herb Dhaliwal, P.C., M.P.
c.c. The Honourable Paul Martin, P.C., M.P.
Minister of Finance
A. Nelson
August 6, 1998
957-9768
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