Income Tax
Income Calculation
Capital Cost Allowance
Appeal from T.C.C. decision (2007 TCC 243) allowing respondent’s appeal from reassessments regarding capital cost allowance deduction—Respondent must show assets, for which capital cost allowance claimed, required to put coal in “prime metal stage or its equivalent” (PMSE)—Meaning of PMSE in Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, Income Tax Regulations, C.R.C., c. 945, specifically determination of when commodity becoming marketable—Linden J.A.’s approach in Gulf Canada Resources Ltd. v. Canada (1996), 192 N.R. 283 (F.C.A.) applied—That approach demanding consideration of circumstances of individual taxpayer to determine whether production processes produced marketable, saleable commodity meeting specifications of taxpayer’s reasonably contemplated customers—T.C.C. not erring in adopting approach whereunder individual circumstances of taxpayer considered in determining PMSE reached—Appeal dismissed.
Canada v. Atco Electric Ltd. (A-273-07, 2008 FCA 188, Sexton J.A., judgment dated May 22, 2008, 20 pp.)