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¶ 13. A payment made to obtain a patent, franchise, concession or licence is included in the capital cost of the property whether made to the actual grantor or to a holder of such property in order that he will relinquish it in favour of the payer. Where, however, a taxpayer pays an amount, either separately or as part of a payment to acquire the business or assets of another person, for which he does not obtain an existing patent, franchise, concession or licence but only the right to stand in place of that other person in applying for such a property or for a renewal thereof, no part of that amount is paid for property of class 14; such amount may, however, qualify as an eligible capital expenditure for the purposes of section 14. An example would be where a taxpayer pays an amount to a vendor for a licensed taxicab where the licence is not transferable but he fully expects that the licensing authority will issue a new licence to him. Such amount would not be depreciable as the taxpayer is paying for a mere expectation of being granted a licence.
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