4 October 2002 Internal T.I. 2002-0139807 F - REMBOURSEMENT DE TPS -- summary under J

An employee who, for Year I, claimed a GST rebate relating to CCA claimed on a Class 10.1 motor vehicle, but only became entitled to the rebate in Year II, when claimed in the return and after the sale of the vehicle. The taxpayer acquired a new vehicle, but it was included in a separate Class 10.1. The Directorate noted that, since the rebate was received after the disposition of the property, it reduced the UCC of the Class pursuant to J of the UCC formula rather than reducing the capital cost of the property pursuant to s. 13(7.1). The Directorate further noted that s. “13(2) provides that there will be no recapture of depreciation where there is an excess under subsection 13(1) in respect of a Class 10.1 property.”