Loans and Financing Charges

Cases

Bowater Canadian Ltd. v. The Queen, 87 DTC 5287, [1987] 2 CTC 47 (FCA)

As a condition to the sale of a company ("Bulkley") in which the taxpayer and another corporation ("Bathurst") had substantial loan and share...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) interest incurred to acquired defaulted debt 163

The Queen v. Lehndorff Realty Developments Ltd., 86 DTC 6610, [1987] 1 CTC 42 (FCTD)

A German limited partnership ("Canada Grund") having control of the taxpayer, in consideration of the taxpayer's promise to indemnify it from...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 172 - Subsection 172(1) 35

Isaac Meisels Investments Ltd. v. The Queen, 85 DTC 5029, [1985] 1 CTC 9 (FCTD)

Non-interest bearing advances to a subsidiary of the taxpayer were not made for the purpose of earning income.

The Queen v. Merban Capital Corp. Ltd., 85 DTC 5014, [1985] 1 CTC 1 (FCTD), rev'd 89 DTC 5404 (FCA)

The taxpayer guaranteed the obligations of its subsidiary ("MKH") and a subsidiary in turn of MKH ("Holdings") to pay interest on bank loans...

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Brunette Investments Ltd. v. The Queen, 81 DTC 5367, [1981] CTC 486 (FCTD)

An "administration fee" charged by a management company ("WP") to the taxpayer represented the amount of an advance that WP had made to an...

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The Queen v. Doral Investment Corp., 79 DTC 5316, [1979] CTC 398 (FCTD)

The Court rejected an argument that a non-interest bearing loan was made by the taxpayer company to a second company ("East End") in order to earn...

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The Queen v. Laidlaw Transport Ltd., 77 DTC 5091, [1977] CTC 151 (FCTD)

A fee of $61,317 which a subsidiary paid to its parent for services that the parent (primarily in the person of its shareholder and officer)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Old 101

Montreal Coke and Manufacturing Co. v. MNR, [1944] A.C. 126, [1944] CTC 94 (P.C.)

Expenses incurred by the taxpayers in redeeming outstanding bonds before maturity and reborrowing at lower rates of interest, including redemption...

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Administrative Policy

14 June 2017 External T.I. 2016-0666411E5 - Negative returns on investments

The interest rate on deposits held with a financial institution fluctuates during the year so that in some months, positive interest accrues and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) capital loss on loan with nil interest rate may be denied by s. 40(2)(g)(ii) 119
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) negative interest not a contra to positive interest 150