Cases
65302 British Columbia Ltd. v. Canada, 99 DTC 5799, [1999] 3 S.C.R. 804
In finding that considerations of public policy should not enter into a determination as to whether fines or penalties were deductible in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | fines for conduct engaged in for an income-producing purpose | 271 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | avoidance of threat to business not relevant to income treatment | 124 |
| Tax Topics - Statutory Interpretation - Drafting Style | avoid policy conjectures in detailed and complex statute | 126 |
| Tax Topics - Statutory Interpretation - Ease of Administration | avoidance of undue burden on taxpayer | 74 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 125 |
Amway of Canada. Ltd. v. The Queen, 96 DTC 6135, [1996] 2 CTC 162 (FCA)
Strayer J.A. found that all amounts paid by the taxpayer to Revenue Canada in settlement of an enforcement action brought against it pursuant to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | penalties not an unavoidable incident of the business | 132 |
TNT Canada Inc. v. The Queen, 88 DTC 6334, [1988] 2 CTC 91 (FCTD)
Fines paid by the taxpayer (a common carrier) under the Customs Act and the Excise Tax Act for having repair work done in the United States...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Accounting Principles | 50 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 66 |
Day & Ross v. The Queen, 76 DTC 6433, [1976] CTC 707 (FCTD)
Fines paid by the taxpayer, a trucking company, for violations of highway weight restriction laws "resulted from the day to day operation of its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 106 |
See Also
McNeill v. The Queen, 99 DTC 280 (TCC), rev'd 2000 DTC 6211 (FCA)
In finding that damages paid by the taxpayer for breach of his non-compete covenant provided on a sale of his accounting practice to a firm of...
Neeb v. The Queen, 97 DTC 895 (TCC)
In finding that the taxpayer, who had carried on a narcotics business, could not deduct the value of hashish that had been seized by the American...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | legal fees to defend against criminal charges for conducting an illegal narcotics business were personal | 62 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs | 84 |
Port Colbourne Poultry Ltd. v. R., 97 DTC 237, [1997] 2 CTC 2480 (TCC)
After finding that a fine that the taxpayer agreed to pay as a result of an alleged environmental offence by one of its unsupervised employees was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 142 |
Sunys Petroleum Inc. v. The Queen, 96 DTC 1759, [1996] 3 CTC 2931 (TCC)
Penalties payable by the taxpayer (which operated gasoline stations) as a result of its failure to remit federal sales and excises taxes on some...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 116 |
R. v. Castelli (1992), 11 OR (3d) 170 (Ont. Ct. G. D.)
In the absence of evidence that alleged kick-back payments made by the accused were not reasonable or necessary to generate income, it followed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 239 - Subsection 239(1) - Paragraph 239(1)(d) | 54 |
Atomic Transfer Ltd. v. MNR, 64 DTC 153 (TAB)
Fines paid by the taxpayer (a trucking company) for operating overweight trucks on the highways of various provinces were non-deductible because...
Administrative Policy
6 April 2001 External T.I. 2001-0074185 - DEDUCT. OF FINES AND PENALTIES
In light of the 6502 decision, the tests of "avoidability" and "public policy" discussed in IT-104R2 are no longer relevant, and as a result the...
IT-104R "Deductibility of Fines or Penalties"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures | 28 |
IT-467R "Damages, Settlements and Similar Payments"
Damages payable as a result of a legal action or certain other wrongful conduct will not be deductible if to allow the expense would be contrary...