,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

            ,9=m,n ,circul>
    
,subject3 ,revi.n ( ,capital ,co/
  ,all[.e ,claims ,& ,o!r ,p]missive
  ,deduc;ns
,numb]3 #hd-a
,date3 ,july #i1 #aihd

  ,! guidel9es 9 c.ell$ ,,it-#aab;,r >e
n[ 9corporat$ 9 ? ,9=m,n ,circul>4 ,"!
has be5 no *ange 9 ! ,de"p;t's practice
set \ 9 c.ell$ ,,it-#aab;,r 9 respect
6claims = capital co/ all[.e or o!r
p]missive deduc;ns4 ,! practice is 3t9u$
)\t 9t]rup;n4

#a4 ,f "t 6"t1 ! ,de"p;t rcvs reque/s f
  taxpay]s 6p]mit a revi.n ( capital co/
  all[.e claims = previ\s tax,n ye>s4 ,z
  well1 ! situ,n (t5 >ises ": a revi.n
  results f a reassess;t 0! ,de"p;t4 ,!
  foll[+ -;ts \tl9e ! types (         #a
                 #hd-a               a#a
  revi.ns t g5],y o3ur &! circum/.es "u
  : reque/s =a revi.n w 2 a3ept$ 0!
  ,de"p;t4 ,^! -;ts apply equ,y 6o!r
  p]missive deduc;ns1 s* z special
  mortgage res]ves calculat$ "u sec;n
  #cc1 sci5tific rese>* exp5ditures (a
  capital nature calculat$ "u p>agraph
  #cg7#a77b71 or taxa# capital ga9s
  res]ves calculat$ "u subp>agraph
  #dj7#a77a77;iii74
#b4 ,a ref];e 6! ^ws 8reassess;t ( tax0
  or 8taxes paya#0 9 ? circul> 9cludes1
  9 ! case (a self-employ$ 9dividual1 a
  ref];e 63tribu;ns requir$ "u ! ,canada
  ,p5.n ,plan ,act4
#c4 ,"u p>agraph #bj7#a77a7 (! ,9come
  ,tax ,act a taxpay] has ! "r 6deduct1
  9 -put+ 9come = tax purposes1 s* am.ts
  ( capital co/ all[.e 7up 6! maximum
  all[$ 0regul,n7 z >e desir$4 ,any
  revi.n 6an am.t previ\sly deduct$1 : !
  ,de"p;t may make1 z describ$ 9 #d1 #e1
  #f1 #h1 #i & #aj 2l1 w n 2 made un.s !
  taxpay] makes ! reque/ 9 writ+4     #b
              ,reassess;ts           b#a
    
#d4 ,": a taxpay] has *>g$ 6exp5se 9 a
  ye> ! co/ ( prop]ty : %d h be5
  capitaliz$1 t exp5se w 2 4all[$ 6!
  taxpay] 0virtue ( p>agraph #ah7#a77b74
  ,9 s* cases ! taxpay] w 2 all[$1 if s
  desir$1 6make a revis$ capital co/
--------------------------------------#b
  all[.e claim =! ye> 9 ord] 6claim
  capital co/ all[.e on ! co/ (! prop]ty
  t %d h be5 capitaliz$4
#e4 ,": an upw>d reassess;t ( tax is
  made 9 a ye> "? adju/;ts o!r ?an ^?
  \tl9$ 9 #d abv1 &a taxpay] has n
  claim$ maximum capital co/ all[.es 9
  all classes 9 t ye>1 ! taxpay] w 2
  advis$ (! circum/.es & all[$1 if s
  desir$1 6make a revis$ claim = t ye>4
#f4 ,": a taxpay] has claim$ m capital
  co/ all[.e ?an is p]missi# = "o class
  ( prop]ty & less ?an ! maximum all[$ =
  ano!r class1 ! ,de"p;t wd ord9>ily 2
  requir$ 6reassess tax on ! excess
  all[.e claim$ ov] ! maximum =!      #c
                 #hd-a               a#b
  =m] class4 ,9 ^! circum/.es ! taxpay]
  w 2 all[$1 if s desir$1 6h "s "p (!
  excessive all[.e transf]r$ 6! latt]
  class4

          ,]rors 9 classific,n
    
#g4 ,": "! is a misclassific,n (
  deprecia# prop]ty 0a taxpay]1 revi.n
  (! capital co/ all[.e s*$ules w
  ord9>ily 2 made = all ye>s t c 2
  reassess$ )9 ! limit,ns impos$
  0subsec;n #aeb7#d74 ,x %d 2 not$1
  h["e1 t ": deprecia# prop]ty has be5
  misclassifi$ 0a taxpay] or %d h1 b has
  n1 be5 reclassifi$ 0a taxpay] pursuant
  6a *ange 9 ! ,act or ,regul,ns1 & an
  all[.e 9 respect (! capital co/ ( t
  prop]ty has be5 claim$ & all[$ "u !
  9correct class1 subsec;n #ac7#f7
  provides t ! ,m9i/] ( ,n,nal ,rev5ue
  may direct t1 = ye>s prior 6! ye>
  specifi$ 9 ! direc;n1 ! misclassifi$
  prop]ty 2 deem$ 6h be5 prop]ty (!   #d
                 #hd-a               b#b
  class 9 : x 0 orig9,y classifi$1 & !n
  2 deem$ 6h be5 transf]r$ 6xs prop]
  class at ! 2g9n+ (! specifi$ ye>4
  ,subsec;n #ac7#e7 sets \ ! me*anics "u
  : transf]s ( misclassifi$ prop]ty >e
  d1lt ) 9 s* circum/.es & is expla9$ 9
  detail 9 ,9t]pret,n ,bullet9
  ,,it-#aij;,r1 8,capital ,co/ ,all[.e--
  ,transf]r$ & ,misclassifi$ ,prop]ty40

          ,prop]ty subject to
              8c]tific,n0
    
#h4 ,a taxpay] may acquire deprecia#
  prop]ty ( "o class : af 8c]tific,n0 or
  8a3ept.e0 0a designat$ ,m9i/] or o!r
  body !n qualifies = 9clu.n 9 ano!r
  class provid+ =a fa/] write-(f4 ,=
  example1 a mo;n picture film o!rwise
  prop]ty ( class #aj7q7 2comes prop]ty
  ( class #ab7n7 af c]tific,n z a
  c]tifi$ f1ture film4 ,": ? is ! case
  &! taxpay]'s ye>-5d 9t]v5es 2t ! date
  ( acquisi;n (! prop]ty &! date      #e
                 #hd-a               c#b
  8c]tific,n0 or 8a3ept.e0 9 respect ( t
  prop]ty is giv51 x is ! ,de"p;t's
  policy 6all[ ! taxpay]1 af ! date (
  c]tific,n or a3ept.e1 6tr1t ! prop]ty
  z prop]ty (! class provid+ =! fa/]
  write-(f1 e6ective f ! date (
  acquisi;n4 ,! taxpay] may !n make
  revis$ claims = a4i;nal capital co/
--------------------------------------#c
  all[.e = all prior tax,n ye>s a6ect$ t
  >e n /atute b>r$ 6reassess;t1 un.s !
  -;ts 9 #aj 2l ) reg>d 6/atute-b>r$
  ye>s apply4

     ,revi.ns reque/$ 9 taxa# ye>s
    
#i4 ,if a taxpay] reque/s a revi.n (
  capital co/ all[.e claim$ 9 a ye> t 0
  assessa# 6tax1 s* reque/s w 2 a3$$
  6only if ! "t has n expir$ = fil+ a
  notice ( objec;n 9 respect ( t ye>
  7i4e4 #ij "ds f ! "d ( mail+ (! notice
  ( assess;t or reassess;t = t ye>7 un.s
  ! -;ts 9 #h abv apply4 ,if1 h["e1   #f
                 #hd-a               a#c
  circum/.es >e s* t ! reque/ = revi.n (
  capital co/ all[.e claim$ 9 a ye>
  a3ompanies a reque/ = an (fsett+ *ange
  9 "s o!r 8p]missive0 deduc;n1 ! result
  ( : is t no *ange o3urs 9 ! assess$
  tax = t ye> 7or any o!r ye> = : ! #ij
  "d "t-limit has expir$71 s* reque/s w
  ord9>ily 2 a3$$ to4

      ,revi.ns reque/$ 9 non-taxa#
                  ye>s
    
#aj4 ,": a taxpay] reque/s a revi.n (
  capital co/ all[.e claim$ 9 a tax,n
  ye> = : a notific,n t no tax is paya#
  _h be5 issu$ 7e4g4 2c (a non-capital
  loss 9 t ye>1 ! applic,n (a non-
  capital loss ( ano!r ye>1 or ! fact t
  9come 0 exempt f tax 9 t ye>71 s*
  reque/ w 2 all[$ provid$ "! is no
  *ange 9 ! tax paya# =! ye> or any o!r
  ye> fil$1 9clud+ "o t is /atute b>r$1
  = : ! "t has expir$ = fil+ a notice (
  objec;n4 ,s* reque/ w n 2 all[$1    #g
                 #hd-a               b#c
  h["e1 ": af ,febru>y #bd1 #aigg !
  ,m9i/] has issu$ a notice ( det]m9,n
  pursuant 6subsec;n #aeb7#a.a74 ,a
  taxpay] :o wi%es 6revise ! capital co/
  all[.e 9 a ye> = : a notice ( det]m9,n
  has be5 issu$ %d d s )9 #ij "ds f ! "d
  ( mail+ ! notice ( det]m9,n = t ye>4

           ,reque/s = revi.n
    
#aa4 ,": a taxpay] wi%es 6reque/ a
  revi.n ( prior ye>s' capital co/
  all[.e claims )9 ! limits describ$
  abv1 a lr %d 2 =w>d$ 6! director (!
  4trict tax,n (fice 9 : ! taxpay] files
  9come tax returns4 ,? lr %d set \ !
  p]t95t 9=m,n 3c]n+ ! reque/$ revi.ns
  al;g ) am5d$ capital co/ all[.e
  s*$ules & any o!r s*$ules : >e a6ect$
  0! revi.n4



                                      #h
        ,future posi;n (! de"p;t     c#c
    
#ab4 ,9 view (! *anges 6! ,9come ,tax
  ,act 0,s4,c4 #aihc-hd1 ,*apt] #a1 !
  ,de"p;t w 2 review+ ! abv posi;ns &
  may ann\nce *anges at a lat] date4


















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