A farmer constructed a manure pit out of cement, meshing and earthwork and other materials that was 51 metres deep and consisted primarily of a pit platform to receive the manure, and a slurry pit and ramp.
The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor coverings and performed electrical, ventilation and plumbing work to make the premises suitable for use in its manufacturing and processing (“M&P”) operations. It took the position that the costs of the property added to the Shells for this work should be included in Class 29 rather than Class 13.
Regarding the classification of a septic tank on a campground, the Directorate referred to Superior Pre-Kast Septic Tanks ([1978] 2 SCR 612), and stated:
Supporting piers, reinforced concrete foundations and chest walls which facilitated and were necessary for the production of paper nonetheless had no separate existence as tangible capital assets and instead formed part of buildings. Accordingly, they qualified as Class 3 rather than Class 8 assets.
Tanks and recovering units were "structures" and also fell within Class 3.
Golf Club greens and tees were "not so obviously artificial as to be readily distinguishable from the natural earth surroundings of the rest of the golf course", and accordingly did not qualify as "structures" (class 3). They also were not "similar surface constructions" (class 1).
The taxpayer used the overburden and tailings produced or extracted by it in the process of extracting bitumen from oil sands deposits to construct dykes separating disposal areas from active mining areas, and deposited the balance of the tailings in the disposal areas. Notwithstanding that the dykes were 200 or 300 feet tall and were carefully engineered, Bell T.C.J. indicated that even if the expenditures on them were considered to have given rise to a capital asset, it was his "impression" that they could not be described as a "structure".
Golf Club greens and tees were "not so obviously artificial as to be readily distinguishable from the natural earth surroundings of the rest of the golf course", and accordingly did not qualify as "structures" (class 3). They also were not "similar surface constructions" (class 1).
