Income Tax Regulations — 1102
y, the taxpayer shall be considered to be dealing at arm’s length with the other person in respect of the acquisition of that property. (20.1) For the purposes of subsections 1100(0.3), (2.02) and (2.021) and 1104(3.1), (4) and (4.01), a particular person or partnership and another person or partnership shall be considered not to be dealing at arm’s length with each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they would be considered to be dealing at arm’s length with each other and it may reasonably be considered that the principal purpose of any transaction or event, or a series of transactions or events, is to cause (a) the property to qualify as accelerated investment incentive property, reaccelerated investment incentive property or immediate expensing property; or (b) the particular person or partnership and the other person or partnership to satisfy the condition in subparagraph 1100(0.3)(c)(i) or subclause 1100(2.02)(a)(i)(C)(I) or (2.021)(a)(i)(C)(I). (21) Where a taxpayer has acquired a property described in Class 43.1 of Schedule II in circumstances in which clauses (b)(iii)(A) and (B) or (e)(iii)(A) and (B) of that class apply, (a) the portion of the property, determined by reference to capital cost, that is equal to or less than the capital cost of the property to the person from whom the property was acquired, is included in that class; and (b) the portion of the property, if any, determined by reference to capital cost, that is in excess of the capital cost of the property to the person from whom it was acquired, shall not be included in that class. (22) Where a taxpayer has acquired a property that is described in Class 43.2 in Schedule II in circumstances in which clauses (b)(iii)(A) and (B) or (e)(iii)(A) and (B) of Class 43.1 in Schedule II apply and the property was included in Class 43.2 in Schedule II of the person from whom the taxpayer acquired the property, (a) the portion of the property, determined by reference to capital cost, that is equal to or less than the capital cost of the property to the person from whom the property was acquired is included in Class 43.2 in Schedule II; and (b) the portion of the property, if any, determined by reference to capital cost, that is in excess of the capital cost of the property to the person from whom it was acquired shall not be included in Class 43.1 or 43.2 in Schedule II. Rules for Additions to and Alterations of Certain Buildings (23) For the purposes of applying paragraphs 1100(1)(a.1) and (a.2) and subsection 1101(5b.1), the capital cost of an addition to or an alteration of a taxpayer’s building is deemed to be the capital cost to the taxpayer of a separate building if the building to which the addition or alteration was made is not included in a separate class under subsection 1101(5b.1). (24) If an addition or an alteration is deemed to be a separate building under subsection (23), the references in paragraphs 1100(1) (a.1) and (a.2) to “the floor space of the building” are to be read as references to “the total floor space of the separate building and the building to which the addition or alteration was made”. Acquisition Costs of Certain Buildings (25) For the purposes of this Part and Schedule II, if an eligible non-residential building of a taxpayer was under construction on March 19, 2007, the portion, if any, of the capital cost of the building that was incurred by the taxpayer before March 19, 2007 is deemed to have been incurred by the taxpayer on March 19, 2007 unless the taxpayer elects (by letter attached to the taxpayer’s return of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the building was acquired) that this subsection not apply to that cost. (26) For the purpose of the definition zero-emission vehicle in subsection 248(1) of the Act, (a) it is a prescribed condition that the motor vehicle has a battery capacity of at le