7-912463
Attention: Mr. John Rutenberg
Dear Sirs:
Re: Accelerated Capital Cost Allowance Program
24(1)
We recently responded to a Calgary District Taxation Office request for a technical interpretation concerning the qualification of water pollution prevention equipment for the purpose of Class 24 Capital Cost Allowance. We understand that your office considered the same equipment and issued a revised certificate and correspondence (copies attached) dated July 18, 1991 in respect of the assigned file number 24(1)
Our review of the Income Tax Regulation confirms that the certification is one qualification that is required in order for equipment to be included in Class 24 for Capital Cost Allowance purposes. In accordance with subparagraph (b)(iv) of the provision, the Minister of the Environment is relied upon to consider and where appropriate issue a certificate to confirm for this department's purposes that the subject equipment is of a type whose primary use is to be preventing, reducing or eliminating of pollution of a kind referred to in subparagraph (iii). Other significant requirements for inclusion in the class are questions of fact and circumstance which can only be considered by Revenue Canada, Taxation officers at a time when all relevant facts concerning the ownership of the equipment, the location of the equipment, and the ownership and operation of the polluting activities are known. We feel very strongly that no assurance of Class 24 inclusion can be given to a taxpayer until all information that relates to each requirement for the class is known and has been considered.
In view of the above, we have recommended that the Calgary District Taxation Office advise 24(1) accordingly and provide a detailed explanation of the remaining qualifications that must be satisfied in order for the equipment to be included in Class 24
Yours truly,
DirectorBilingual Services and Resource Industries DivisionRulings Directorate