1104 (1) Where the taxpayer is an individual and his income for the taxation year includes income from a business the fiscal period of which does not coincide with the calendar year, in respect of the depreciable properties acquired for the purpose of gaining or producing income from the business, a reference in this Part to
- end of the taxation year
end of the taxation year shall be deemed to be a reference to the end of the fiscal period of the business; (la fin de l’année d’imposition)
- taxation year
taxation year shall be deemed to be a reference to the fiscal period of the business. (l’année d’imposition)
(2) In this Part and in Schedule II,
- certified feature film
certified feature film means a motion picture film certified by the Minister of Communications to be a film of not less than 75 minutes running time in respect of which all photography or art work specifically required for the production thereof and all film editing therefor were commenced after November 18, 1974, and either the film was completed before May 26, 1976, or the photography or art work was commenced before May 26, 1976, and certified by him to be
(a) a film the production of which is contemplated in a coproduction agreement entered into between Canada and another country, or
(b) a film in respect of which
(i) the person who performed the duties of producer was a Canadian,
(ii) no fewer than 2/3 in number of all the persons each of whom
(A) was a person who performed the duties of director, screenwriter, music composer, art director, picture editor or director of photography, or
(B) was the individual in respect of whose services as an actor or actress in respect of the film the highest remuneration or the second highest remuneration was paid or payable,
were Canadians,
(iii) not less than 75 per cent of the aggregate of the remuneration paid or payable to persons for services provided in respect of the film (other than remuneration paid or payable to or in respect of the persons referred to in subparagraphs (i) and (ii) or remuneration paid or payable for processing and final preparation of the film) was paid or payable to Canadians,
(iv) not less than 75 per cent of the aggregate of costs incurred for processing and final preparation of the film including laboratory work, sound recording, sound editing and picture editing (other than remuneration paid or payable to or in respect of persons referred to in subparagraphs (i), (ii) and (iii)), was incurred in respect of services rendered in Canada, and
(v) the copyright protecting its use in Canada is beneficially owned
(A) by a person who is either a Canadian or a corporation incorporated under the laws of Canada or a province, or
(B) jointly or otherwise by two or more persons described in clause (A),
other than a film
(c) acquired after the day that is the earlier of
(i) the day of its first commercial use, and
(ii) 12 months after the day the principal photography thereof is completed, or
(d) in respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b); (long métrage portant visa)
- certified production
certified production, in respect of a particular taxation year, means a motion picture film or video tape certified by the Minister of Communications to be a film or tape in respect of which all photography, taping or art work required specifically for the production thereof and all film or tape editing therefor were commenced after May 25, 1976, certified by him to be a film or tape in respect of which the principal photography or taping thereof was commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year and certified by him to be
(a) a film or tape the production of which is contemplated in a coproduction agreement entered into between Canada and another country, or
(b) a film or tape in respect of which
(i) the individual who performed the duties of producer was a Canadian,
(ii) the Minister of Communications has allotted not less than an aggregate of six units of production, not less than two of which were allotted by virtue of clause (A) or (B) and not less than one of which was allotted by virtue of clause (C) or (D), for individuals who provided services in respect of the film or tape, in the following manner:
(A) for the director, two units of production,
(B) for the screenwriter, two units of production,
(C) for the actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production,
(D) for the actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable (unless in the opinion of the Minister of Communications the individual did not perform a major role in the film or tape), one unit of production,
(E) for the art director, one unit of production,
(F) for the director of photography, one unit of production,
(G) for the music composer, one unit of production, and
(H) for the picture editor, one unit of production,
shall be allotted, provided the individual in respect of such allotment was a Canadian,
(iii) not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) paid or payable to persons for services provided in respect of producing the film or tape (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii), costs referred to in subparagraph (iv) incurred for processing and final preparation of the film or tape, and amounts paid or payable in respect of insurance, financing, brokerage, legal and accounting fees and similar amounts) was paid or payable to, or in respect of services provided by, Canadians, and
(iv) not less than 75 per cent of the aggregate of all costs (other than costs determined by reference to the amount of income from the film or tape) incurred for processing and final preparation of the film or tape, including laboratory work, sound re-recording, sound editing and picture editing (other than remuneration paid or payable to, or in respect of, individuals referred to in subparagraph (i) or (ii)) was incurred in respect of services provided in Canada,
other than a film or tape
(c) acquired after the day that is the earlier of
(i) the day of its first commercial use, and
(ii) 12 months after the day the principal photography or taping thereof is completed,
(d) acquired by a taxpayer who has not paid in cash, as of the end of the particular taxation year, to the person from whom he acquired the film or tape, at least 5 per cent of the capital cost to the taxpayer of the film or tape as of the end of the year,
(e) acquired by a taxpayer who has issued in payment or part payment thereof, a bond, debenture, bill, note, mortgage or similar obligation in respect of which an amount is not due until a time that is more than four years after the end of the taxation year in which the taxpayer acquired the film or tape,
(f) acquired from a non-resident, or
(g) in respect of which certification under this definition has been revoked by the Minister of Communications as provided in paragraph (10)(b),
and, for the purposes of the application of this definition,
(h) in respect of a film or tape acquired in 1987, other than a film or tape in respect of which paragraph (i) applies, the reference in this definition to “commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year” shall be read as a reference to “commenced before the end of 1987 or was completed before July, 1988”; and
(i) in respect of a film or tape acquired in 1987 or 1988 that is included in paragraph (n) of Class 12 in Schedule II and that is part of a series of films or tapes that includes another property included in that paragraph, the reference in this definition to “commenced before the end of the particular taxation year or was completed no later than 60 days after the end of that year” shall be read as a reference to “completed before 1989”; (production portant visa)
- certified short production
certified short production[Repealed, SOR/86-254, s. 2]
- computer software
computer software includes systems software and a right or licence to use computer software; (logiciel)
- designated overburden removal cost
designated overburden removal cost of a taxpayer means any cost incurred by him in respect of clearing or removing overburden from a mine in Canada owned or operated by him where the cost
(a) was incurred after November 16, 1978 and before 1988,
(b) was incurred after the mine came into production in reasonable commercial quantities,
(c) as of the end of the taxation year in which the cost was incurred, has not been deducted by the taxpayer in computing his income, and
(d) is not deductible, in whole or in part, by the taxpayer in computing his income for a taxation year subsequent to the taxation year in which the cost was incurred, other than by virtue of paragraph 20(1)(a) of the Act. (coût désigné d’enlèvement des terrains de couverture)
- designated underground storage cost
designated underground storage cost of a taxpayer means any cost incurred by him after December 11, 1979 in respect of developing a well, mine or other similar underground property for the storage in Canada of petroleum, natural gas or other related hydrocarbons; (coût désigné de stockage souterrain)
- gas or oil well equipment
gas or oil well equipment includes
(a) equipment, structures and pipelines, other than a well casing, acquired to be used in a gas or oil field in the production therefrom of natural gas or crude oil, and
(b) a pipeline acquired to be used solely for transmitting gas to a natural gas processing plant,
but does not include
(c) equipment or structures acquired for the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products, or
(d) a pipeline for removal or for collection for immediate removal of natural gas or crude oil from a gas or oil field except a pipeline referred to in paragraph (b); (matériel de puits de gaz ou de pétrole)
- general-purpose electronic data processing equipment
general-purpose electronic data processing equipment means electronic equipment that, in its operation, requires an internally stored computer program that
(a) is executed by the equipment,
(b) can be altered by the user of the equipment,
(c) instructs the equipment to read and select, alter or store data from an external medium such as a card, disk or tape, and
(d) depends upon the characteristics of the data being processed to determine the sequence of its execution; (matériel électronique universel de traitement de l’information)
- ore
ore includes ore from a mineral resource that has been processed to any stage that is prior to the prime metal stage or its equivalent; (minerai)
- railway system
railway system includes a railway owned or operated by a common carrier, together with all buildings, rolling stock, equipment and other properties pertaining thereto, but does not include a tramway; (réseau de chemin de fer)
- specified temporary access road
specified temporary access road means
(a) a temporary access road to an oil or gas well in Canada, and
(b) a temporary access road the cost of which would, if the definition Canadian exploration expense in subsection 66.1(6) of the Act were read without reference to paragraph (l) of that definition, be a Canadian exploration expense because of paragraph (f) or (g) of that definition; (route d’accès temporaire déterminée)
- systems software
systems software means a combination of computer programs and associated procedures, related technical documentation and data that
(a) performs compilation, assembly, mapping, management or processing of other programs,
(b) facilitates the functioning of a computer system by other programs,
(c) provides service or utility functions such as media conversion, sorting, merging, system accounting, performance measurement, system diagnostics or programming aids,
(d) provides general support functions such as data management, report generation or security control, or
(e) provides general capability to meet widespread categories of problem solving or processing requirements where the specific attributes of the work to be performed are introduced mainly in the form of parameters, constants or descriptors rather than in program logic,
and includes a right or licence to use such a combination of computer programs and associated procedures, related technical documentation and data; (logiciel de systèmes)
- tar sands ore
tar sands ore means ore extracted from a deposit of bituminous sands or oil shales; (minerai de sables asphaltiques)
- telegraph system
telegraph system includes the buildings, structures, general plant and communication and other equipment pertaining thereto; (réseau de télégraphe)
- telephone system
telephone system includes the buildings, structures, general plant and communication and other equipment pertaining thereto; (réseau de téléphone)
- television commercial message
television commercial message means a commercial message as defined in the Television Broadcasting Regulations, 1987 made under the Broadcasting Act; (message publicitaire pour la télévision)
- tramway or trolley bus system
tramway or trolley bus system includes the buildings, structures, rolling stock, general plant and equipment pertaining thereto and where buses other than trolley buses are operated in connection therewith includes the properties pertaining to those bus operations. (réseau de tramway ou d’autobus à trolley)
(3) Except as otherwise provided in subsection (6), in this Part and in Schedules II and V,
- industrial mineral mine
industrial mineral mine includes a peat bog or deposit of peat but does not include a mineral resource; (mine de minéral industriel)
- mineral
mineral includes peat; (minéral)
- mining
mining includes the harvesting of peat. (exploitation minière)
(4) [Repealed, SOR/79-670, s. 3]
Mining
(5) For the purposes of paragraphs 1100(1)(w) to (ya), subsections 1101(4a) to (4d) and Classes 10, 28 and 41 in Schedule II, a taxpayer’s “income from a mine”, or any expression referring to a taxpayer’s income from a mine, includes income reasonably attributable to
(a) the processing by the taxpayer of
(i) ore (other than iron ore or tar sands ore) all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,
(ii) iron ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,
(iii) tar sands ore all or substantially all of which is from a mineral resource owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, or
(iv) material extracted by a well, all or substantially all of which is from a deposit of bituminous sands or oil shales owned by the taxpayer, to any stage that is not beyond the crude oil stage or its equivalent;
(b) the production by the taxpayer of material from a deposit of bituminous sands or oil shales; and
(c) the transportation by the taxpayer of
(i) output, other than iron ore or tar sands ore, from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the prime metal stage or its equivalent,
(ii) iron ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the pellet stage or its equivalent, or
(iii) tar sands ore from a mineral resource owned by the taxpayer that has been processed by him to any stage that is not beyond the crude oil stage or its equivalent,
to the extent that such transportation is effected through the use of property of the taxpayer that is included in Class 10 in Schedule II because of paragraph (m) thereof or that would be so included if that paragraph were read without reference to subparagraph (v) thereof and if Class 41 in Schedule II were read without the reference therein to that paragraph.
(5.1) For the purpose of Class 41 in Schedule II, a taxpayer’s gross revenue from a mine includes
(a) revenue reasonably attributable to the processing by the taxpayer of
(i) ore (other than iron ore or tar sands ore) from a mineral resource owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,
(ii) iron ore from a mineral resource owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,
(iii) tar sands ore from a mineral resource owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, and
(iv) material extracted by a well from a mineral resource owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent;
(b) the amount, if any, by which any revenue reasonably attributable to the processing by the taxpayer of
(i) ore (other than iron ore or tar sands ore) from a mineral resource not owned by the taxpayer, to any stage that is not beyond the prime metal stage or its equivalent,
(ii) iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,
(iii) tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, and
(iv) material extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent
exceeds the cost to the taxpayer of the ore or material processed; and
(c) revenue reasonably attributable to the production by the taxpayer of material from a deposit of bituminous sands or oil shales.
(5.2) For the purpose of subsection (5.1), “gross revenue from a mine” does not include revenue reasonably attributable to the addition of diluent, for the purpose of transportation, to material extracted from a deposit of bituminous sands or oil shales.
(6) For the purposes of Class 10 in Schedule II,
(a) income from a mine includes income reasonably attributable to the processing of
(i) ore, other than iron ore or tar sands ore, from a mineral resource not owned by the taxpayer to any stage that is not beyond the prime metal stage or its equivalent,
(ii) iron ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the pellet stage or its equivalent,
(iii) tar sands ore from a mineral resource not owned by the taxpayer to any stage that is not beyond the crude oil stage or its equivalent, or
(iv) material extracted by a well from a mineral resource not owned by the taxpayer that is a deposit of bituminous sands or oil shales to any stage that is not beyond the crude oil stage or its equivalent; and
(b) mine includes a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite.
(6.1) [Repealed, SOR/99-179, s. 3]
(7) For the purposes of paragraphs 1100(1)(w) to (ya), subsections 1101(4a) to (4d) and 1102(8) and (9), section 1107 and Classes 12, 28 and 41 in Schedule II,
(a) mine includes
(i) a well for the extraction of material from a deposit of bituminous sands or oil shales or from a deposit of calcium chloride, halite or sylvite, and
(ii) a pit for the extraction of kaolin or tar sands ore,
but does not include
(iii) an oil or gas well, or
(iv) a sand pit, gravel pit, clay pit, shale pit, peat bog, deposit of peat or a stone quarry (other than a kaolin pit or a deposit of bituminous sands or oil shales);
(b) all wells of a taxpayer for the extraction of material from one or more deposits of calcium chloride, halite or sylvite, the material produced from which is sent to the same plant for processing, are deemed to be one mine of the taxpayer; and
(c) all wells of a taxpayer for the extraction of material from a deposit of bituminous sands or oil shales that the Minister, in consultation with the Minister of Natural Resources, determines constitute one project, are deemed to be one mine of the taxpayer.
(8) For the purposes of subsection (7), stone quarry includes a mine producing dimension stone or crushed rock for use as aggregates or for other construction purposes.
Manufacturing or Processing
(9) For the purposes of subsection 1100(26) and Class 29 in Schedule II, “manufacturing or processing” does not include
(a) farming or fishing;
(b) logging;
(c) construction;
(d) operating an oil or gas well or extracting petroleum or natural gas from a natural accumulation thereof;
(e) extracting minerals from a mineral resource;
(f) processing of
(i) ore, other than iron ore or tar sands ore, from a mineral resource to any stage that is not beyond the prime metal stage or its equivalent,
(ii) iron ore from a mineral resource to any stage that is not beyond the pellet stage or its equivalent, or
(iii) tar sands ore from a mineral resource to any stage that is not beyond the crude oil stage or its equivalent;
(g) producing industrial minerals;
(h) producing or processing electrical energy or steam, for sale;
(i) processing natural gas as part of the business of selling or distributing gas in the course of operating a public utility;
(j) processing heavy crude oil recovered from a natural reservoir in Canada to a stage that is not beyond the crude oil stage or its equivalent; or
(k) Canadian field processing.
Certified Films and Video Tapes
(10) For the purposes of subsection 1100(21) and the definitions certified feature film and certified production and in subsection (2),
(a) Canadian means an individual who was, at all relevant times,
(i) a Canadian citizen as defined in the Citizenship Act, or
(ii) a permanent resident within the meaning of the Immigration Act, 1976;
(b) a motion picture film or video tape that has been certified by
(i) the Secretary of State, or
(ii) the Minister of Communications
as a certified feature film or certified production, as the case may be, may have its certification revoked by the Minister of Communications where an incorrect statement was made in the furnishing of information for the purpose of obtaining that certification and a certification that has been so revoked is void from the time of its issue;
(c) “remuneration” does not include an amount determined by reference to the amount of income from a motion picture film or video tape;
(c.1) revenue guarantee means a contract or other arrangement under the terms of which a taxpayer has a right to receive a minimum rental revenue or other fixed revenue in respect of a right to the use, in any manner whatever, of a certified feature film or certified production;
(c.2) a screenwriter shall be deemed to be an individual who is a Canadian where
(i) each individual involved in the preparation of the screenplay is a Canadian, or
(ii) the principal screenwriter is an individual who is a Canadian and
(A) the screenplay for the motion picture film or video tape is based upon a work authored by a Canadian,
(B) copyright in the work subsists in Canada, and
(C) the work is published in Canada;
(d) unit of production means a measure used by the Minister of Communications in determining the weight to be given for each individual Canadian referred to in subparagraph (b)(ii) of the definition certified production in subsection (2) who provides services in respect of a motion picture film or video tape; and
(e) where each individual who performed a service in respect of a motion picture film or video tape as the
(i) director,
(ii) screenwriter,
(iii) actor or actress in respect of whose services for the film or tape the highest remuneration was paid or payable,
(iv) actor or actress in respect of whose services for the film or tape the second highest remuneration was paid or payable,
(v) art director,
(vi) director of photoghraphy,
(vii) music composer, or
(viii) picture editor
was a Canadian, the Minister of Communications shall be deemed to have allotted six units of production in respect of the film or tape for the purposes of the definition certified production in subsection (2).
Certified Class 34 Properties
(11) For the purposes of paragraph (h) of Class 34 in Schedule II, a certificate issued under
(a) subparagraph (d)(i) of that class may be revoked by the Minister of Industry, Trade and Commerce, or
(b) subparagraph (d)(ii) or paragraph (g) of that class, as the case may be, may be revoked by the Minister of Energy, Mines and Resources
where
(c) an incorrect statement was made in the furnishing of information for the purpose of obtaining the certificate, or
(d) the taxpayer does not conform to the plan described in subparagraph (d)(i) or (d)(ii) of that class, as the case may be,
and a certificate that has been so revoked shall be void from the time of its issue.
Amusement Parks
(12) For the purposes of Class 37 in Schedule II, amusement park means a park open to the public where amusements, rides and audio-visual attractions are permanently situated.
Class 43.1 — Energy Conservation Property
(13) The definitions in this subsection apply for the purposes of this subsection and subsection (14) and Class 43.1 in Schedule II.
- digester gas
digester gas means a mixture of gases that are produced from the decomposition of organic waste in a digester and that are extracted from an eligible sewage treatment facility for that organic waste. (gaz de digesteur)
- distribution equipment
distribution equipment means equipment (other than transmission equipment) used to distribute electrical energy generated by electrical generating equipment. (matériel de distribution)
- eligible landfill site
eligible landfill site means a landfill site that is situated in Canada, or a former landfill site that is situated in Canada, and, if a permit or licence in respect of the site is or was required under any law of Canada or of a province, for which the permit or licence has been issued. (site d’enfouissement admissible)
- eligible sewage treatment facility
eligible sewage treatment facility means a sewage treatment facility that is situated in Canada and for which a permit or licence is issued under any law of Canada or of a province. (installation admissible de traitement des eaux usées)
- eligible waste management facility
eligible waste management facility means a waste management facility that is situated in Canada and for which a permit or licence is issued under any law of Canada or of a province. (installation admissible de gestion des déchets)
- enhanced combined cycle system
enhanced combined cycle system means an electrical generating system in which thermal waste from one or more natural gas compressor systems is recovered and used to contribute at least 20 per cent of the energy input of a combined cycle process in order to enhance the generation of electricity, but does not include the natural gas compressor systems. (système à cycles combinés amélioré)
- fossil fuel
fossil fuel means a fuel that is petroleum, natural gas or related hydrocarbons, coal, coal gas, coke, lignite or peat. (combustible fossile)
- landfill gas
landfill gas means a mixture of gases that are produced from the decomposition of organic waste and that are extracted from an eligible landfill site. (gaz d’enfouissement)
- municipal waste
municipal waste means the combustible portion of waste material (other than waste material that is considered to be toxic or hazardous waste pursuant to any law of Canada or of a province) that is generated in Canada and that is accepted at an eligible landfill site or an eligible waste management facility and that, when burned to generate energy, emits only those fluids or other emissions that are in compliance with the law of Canada or of a province. (déchets municipaux)
- solution gas
solution gas means a fossil fuel that is gas that would otherwise be flared and has been extracted from a solution of gas and produced oil. (gaz dissous)
- thermal waste
thermal waste means heat energy extracted from a distinct point of rejection in an industrial process. (déchets thermiques)
- transmission equipment
transmission equipment means equipment used to transmit more than 75 per cent of the annual electrical energy generated by electrical generating equipment, but does not include a building. (matériel de transmission)
- wood waste
wood waste includes scrap wood, sawdust, wood chips, bark, limbs, saw-ends and hog fuel, but does not include residuals (known as black liquor) from wood pulp operations and any waste that no longer has the physical or chemical properties of wood. (déchets de bois)
(14) Where property of a taxpayer is not operating in the manner required by paragraph (c) of Class 43.1 in Schedule II solely because of a deficiency, failing or shutdown — that is beyond the control of the taxpayer — of the system of which it is part and that previously operated in the manner required by that paragraph, that property is deemed, for the purpose of that paragraph, to be operating in the manner required under that paragraph during the period of the deficiency, failing or shutdown, if the taxpayer makes all reasonable efforts to rectify the circumstances within a reasonable time.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- SOR/78-137, s. 3
- SOR/78-502, s. 2
- SOR/78-948, ss. 2, 3
- SOR/79-426, s. 3
- SOR/79-670, s. 3
- SOR/80-418, s. 1
- SOR/80-618, s. 2(F)
- SOR/80-926, s. 1
- SOR/80-935, s. 1
- SOR/80-942, s. 2
- SOR/81-974, s. 1
- SOR/81-1026, s. 1
- SOR/82-265, s. 4
- SOR/83-855, s. 1
- SOR/84-265, s. 1
- SOR/85-174, s. 2
- SOR/86-254, s. 2
- SOR/86-1092, s. 6(F)
- SOR/89-27, s. 3
- SOR/90-22, s. 5
- SOR/91-79, s. 1
- SOR/94-169, s. 2
- SOR/94-686, ss. 11(F), 62, 81(F)
- SOR/95-244, s. 2
- SOR/96-200, s. 1
- SOR/96-451, s. 1
- SOR/97-377, s. 4
- SOR/98-97, s. 2
- SOR/99-179, s. 3
- SOR/2000-327, s. 2
- SOR/2001-295, s. 2(E)
- Date modified: