{"id":1213,"date":"2014-07-28T15:15:35","date_gmt":"2014-07-28T15:15:35","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1213"},"modified":"2014-07-28T15:26:04","modified_gmt":"2014-07-28T15:26:04","slug":"cra-will-not-apply-obiter-in-c-a-e-v-the-queen","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/07\/cra-will-not-apply-obiter-in-c-a-e-v-the-queen\/","title":{"rendered":"CRA will not apply obiter in C.A.E. v. The Queen"},"content":{"rendered":"<p>In <em>C.A.E. Inc. v. Canada<\/em>, 2013 FCA 92, the Federal Court of Appeal (FCA) said that the change-in-use rules in s. 13(7) and s. 45(1) should apply when property, initially held as inventory, begins to be used as depreciable property (and vice versa).\u00a0 In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/07\/2013-0493811C6.pdf\">2013-0493811C6<\/a>, the CRA disagreed with this view.\u00a0 The CRA will therefore continue to apply its position outlined IT-102R2 and IT-218R, i.e., that these change-in-use rules apply <em>only<\/em> where the use of property changes, in whole or part, from a <em>personal<\/em> use to an income-earning use (and vice versa).\u00a0 The CRA adopts this position because:<\/p>\n<ol>\n<li>The FCA\u2019s view would require the same words to be interpreted differently for business property and personal use property; this problem was acknowledged by the FCA (page 3).<\/li>\n<li>The FCA&#8217;s interpretation may not be consistent with the \u201cobject, spirit and context\u201d of the provisions (page 3).<\/li>\n<li>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 (page 3).<\/li>\n<li>\u00a0The FCA\u2019s comments were obiter dicta (page 4).<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>In <em>C.A.E. Inc. v. Canada<\/em>, 2013 FCA 92, the Federal Court of Appeal (FCA) said that the change-in-use rules in s. 13(7) and s. 45(1) should apply when property, initially held as inventory, begins to be used as depreciable property&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1213","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1213"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1213\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}