26 November 2013 Annual CTF Roundtable, 2013-0493811C6 - Change in use -- summary under Paragraph 45(1)(a)

Respecting the statements in C.A.E. that the change of use rules apply to the conversion of inventory to depreciable property or vice versa, CRA stated that it did not agree. Among other concerns:

[I]t would be challenging for both taxpayers and the CRA to apply the change in use rules in the manner outlined by the FCA. Reporting requirements and potential tax liability for every change from inventory to (income-earning) capital use, and vice versa, could represent a significant compliance and administrative burden. …

[T]he CRA will not be changing its general position on the change in use rules as currently presented in Interpretation Bulletins IT-102R2 and IT-218R.

Topics and taglines
Topic
Income Tax Act - s. 45(1)(a)
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
323129
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
344764
Extra import data
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