Income Tax Regulations — 1102
urn of income filed with the Minister in accordance with section 150 of the Act for the taxation year in which the property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be. (9) Where a taxpayer has acquired generating or distributing equipment and plant (including structures) for the purpose of providing power for his own consumption in operating a mine, ore mill, smelter, metal refinery or any combination thereof and at least 80 per cent of the output of electrical energy was so used (a) in his 1948 and 1949 taxation years, or (b) in the first two taxation years in which he so produced power, whichever period is the later, the property shall be included in (c) Class 10 in Schedule II if it is property acquired (i) before 1988, or (ii) before 1990 (A) pursuant to an obligation in writing entered into by the taxpayer before June 18, 1987, (B) that was under construction by or on behalf of the taxpayer on June 18, 1987, or (C) that is machinery or equipment that is a fixed and integral part of a building, structure, plant facility or other property that was under construction by or on behalf of the taxpayer on June 18, 1987, or (d) Class 41, 41.1 or 41.2 in Schedule II in any other case, unless the property would otherwise be included in Class 43.1 or 43.2 in Schedule II and the taxpayer has, by a letter filed with 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 property was acquired, elected to include the property in Class 43.1 or 43.2, as the case may be. (9.1) In their application to generating or distributing equipment and plant (including structures) that were acquired by the taxpayer before November 8, 1969, subsections (8) and (9) shall be read without reference to a “metal refinery”. (9.2) Where a taxpayer acquires property after November 7, 1969 from a person with whom he was not dealing at arm’s length that is property referred to in subsection (8) or (9), notwithstanding those subsections, that property shall not be included in Class 10 in Schedule II by the taxpayer unless the property had been included in that class by the person from whom it was acquired, by virtue of subsection (8) or (9) as it read in its application before November 8, 1969. (10) [Repealed, 2013, c. 40, s. 102] Passenger Automobiles (11) In paragraph (1)(h), cost to the taxpayer of an automobile means, except as provided in subsections (12) and (13), (a) except in any case coming under paragraph (b) or (c), the capital cost to the taxpayer of the automobile, (b) except in any case coming under paragraph (c), where the automobile was acquired by a person (in this section referred to as the “original owner”) after June 13, 1963, and has, by one or more transactions between persons not dealing at arm’s length, become vested in the taxpayer, the greater of (i) the actual cost to the taxpayer, and (ii) the actual cost to the original owner, and (c) where the automobile was acquired by the taxpayer outside Canada for use in connection with a permanent establishment, as defined for the purposes of Part IV or Part XXVI, outside Canada, the lesser of (i) the actual cost to the taxpayer, and (ii) the amount that such an automobile would ordinarily cost the taxpayer if he purchased it from a dealer in automobiles in Canada for use in Canada; ( coût pour le contribuable ) initial transportation charges in respect of an automobile means the costs incurred by a dealer in automobiles for transporting the automobile (before it had been used for any purpose whatever) from, (a) in the case of an automobile manufactured in Canada, the manufacturer’s plant, and (b) in any other case, the place in Canada, if any, at which the automobile was received or stored by a wholesale distributor, to the dealer’s place of business; ( frais de transport initiaux ) passenger automobile means a vehicle, other than an ambulance or hearse, that was designed t