| 19(1) | File No. 5-8543 |
| J.D. Jones | |
| (613) 957-2104 |
November 6, 1989
Dear Sirs:
Re: Classification of Supercab Trucks for Taxation Purposes
This is in reply to your letter of August 16, 1989, wherein you requested that supercab trucks not be included in the definition of "automobile" as defined in subsection 248(1) of the Income Tax Act.
The definition of "automobile" was added to the Income Tax Act as part of the tax reform amendments implementing the restrictions on the depreciable cost of passenger vehicles and the deductibility of certain leasing costs and non-taxable automobile allowances. We have reviewed and considered the comments raised in your letter, however, as the which is designed or adapted to carry more than the driver 2 passengers, it is our view that the supercab trucks are included in this definition.
It is our understanding that the Department of Finance is developing a legislative solution to resolve this issue while maintaining the policy behind these new provisions.
We trust our comments will be of assistance.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch