11 April 1991 Income Tax Severed Letter

Language

English

Document number

Severed letter type

Miscellaneous

d7 import status

Drupal 7 entity type

Node

Drupal 7 entity ID

658277

Extra import data

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Main text

24(1)                         910300
                                        A.W. Larochelle
                                        (613) 957-2140

          19(1)

April 11, 1991

Dear sirs:

Re: Request for a Technical Interpretation

This is in reply to your letter of January 25, 1991 wherein you requested our interpretation of whether automated teller machines (ATM) are eligible for inclusion in class 10 of schedule 11 of the Income Tax Regulations by virtue of paragraph (f) thereof.

Our Comments

Pursuant to the definition of general-purpose electronic data processing equipment in Regulation 1104(2), such equipment must be electronic equipment that, in its operation, requires an internally stored computer program that,

(a) is executed by the equipment,

(b) can be altered by the user of the equipment,

(c) instructs the equipment to read and select, alter or store data from an external medium such as a card, disk or tape, and

(d) depends upon the characteristics of the data being processed to determine the sequence of its execution.

The information provided briefly describes some of the features of the ATM however this information is not sufficient for us to make a determination of whether the conditions described above are met. For example, there is no indication that the program can be altered by the

                                                            .../2

user of the equipment. Further, "ancillary data processing equipment" referred to in paragraph (f) of class 10 generally refers to equipment such as printers, tape drives, and disc drives if they are used in conjunction with general-purpose electronic data processing equipment that qualifies for inclusion in class 10. From the brief description provided we are unable to make a determination on this latter point. Accordingly, we are not satisfied that an ATM meets all of the required characteristics to qualify for inclusion in class 10 by virtue of paragraph (f) thereof. As such equipment does not appear to meet the criteria for inclusion in class 10 we would agree that it should probably be included in class 8 by virtue of paragraph (i) thereof, since it does not appear to be property included in another class in schedule 11. This is assuming of course that no part of the equipment can be regarded as relating to a building or other structure.

The above comments are only expressions of opinion on the application of the Income Tax Act to the facts presented by you and as such should not be construed as advance income tax rulings, nor are they binding on the Department. Should you require an advance ruling with respect of a specific situation please follow the procedure described in Information Circular IC 70-6R2.

We trust our comments are of assistance to you.

Yours truly,

for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch

11 April 1991 Income Tax Severed Letter

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