17 August 1990 Income Tax Severed Letter ACC9608 - Barge not a Vessel

By services, 22 July, 2022
Official title
Barge not a Vessel
Language
English
Document number
Citation name
ACC9608
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
658179
Extra import data
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"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-08-17 08:00:00",
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Main text

90071-3

Merchandising, Manufacturing and              John Brooks
    Construction Sectio

August 17, 1990

Issue

Whether Revenue Canada, Taxation is required to recognize an object as a vessel where the Department of Industry, Science and Technology may issue a certificate pursuant to Regulation 1101(2a).

Section 13(21)(g); Regulation 1101(2a)

24(1)

Issue

Whether the term "vessel" includes 24(1) and hence enable the structure to qualify for an accelerated rate of capital cost allowance pursuant to Regulation 1100(1)(v).

Position

It is our position that the barge will NOT be a vessel.

Rationale

Although the definition of vessel in paragraph 13(21)(g) of the Act refers to a definition in the Canada Shipping Act ("CSA"), there is no requirement for our Department to apply the same administrative rules that the Department of Transport may use in administering the CSA. In the CSA, a vessel is defined as including any ship or boat or any other description of vessel used or designed to be used in navigation. 24(1) 23

Our interpretation is in accord with the policy intent of the accelerated allowance. The Department of Finance noted that this provision was intended for transportation equipment and not for 24(1) At one point in our review, it was unclear how the proposed Maritime Code would impact on this issue. However, the Department of Transport advises that this Code will not be introduced. 24(1)