Will Kare Paving & Contracting Ltd. v. The Queen, 98 DTC 6203 (FCA) -- summary under Class 39

By services, 28 November, 2015

The taxpayer purchased an asphalt plant with the expectation that it would sell up to 40% of the production of the plant to third parties and use the balance in its own asphalt paving business. In fact, only 25% of the plant's production was sold to third parties.

The Tax Court Judge had "correctly ascribed to 'primarily' in this context the meaning of 'most important'" in concluding that the property had not been acquired primarily for manufacturing goods for sale. Furthermore, the Coopers & Lybrand case (94 DTC 6541) had been properly applied in finding that the taxpayer's own use under contracts that were for working materials and not in respect of the sale of goods did not represent the purchase of "goods for sale or lease".

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