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: Whether station wagon modified to carry cargo would be excluded from definition of "automobile".
Position: No.
Reasons: A station wagon is not a vehicle similar to a van or pick-up truck. Consistent with opinion in 9123565.
2001-006905 XXXXXXXXXX Wayne Antle, CGA (613) 957-2102 February 26, 2001
Dear XXXXXXXXXX:
Re: Advance Income Tax Ruling Request - XXXXXXXXXX
This is to confirm that you have indicated in a telephone conversation (Antle/XXXXXXXXXX) that you are withdrawing the above-noted advance income tax ruling request dated January 19, 2001.
We have closed our file concerning this matter. An invoice for the time spent considering this advance income tax ruling request will be forwarded to you under separate cover.
As discussed in our telephone conversation, we are offering the following general comments which are not binding on the Canada Customs and Revenue Agency ("CCRA").
XXXXXXXXXX is proposing to purchase a fleet of station wagons to replace its current fleet of vans. The vehicles will be modified to carry cargo, by folding down the rear seats and installing a storage cage with shelves. You are questioning whether these modified station wagons would be excluded from the definition of automobile in subsection 248(1) of the Income Tax Act (the "Act").
Paragraph (e) of the definition of automobile excludes a "van or pick-up truck or a similar vehicle", if certain conditions are met with respect to usage and seating capacity. In our view, a station wagon is not a similar vehicle to a van or pick-up truck because of its reduced cargo space, and design. Accordingly, a station wagon is an automobile as defined in subsection 248(1) of the Act.
Finally, in our telephone conversation, you indicated that you felt that a station wagon which was modified in the manner outlined above, should not be considered an automobile because it served the same function as a van. As you are aware, the Department of Finance is responsible for tax policy issues. You may wish to raise your concerns with them by writing to Mr. Len Farber, General Director, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, 16th Floor, East Tower, Ottawa, Ontario, K1A 0G5.
We trust that our comments will be of assistance
Yours truly
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
- 2 -