Capital Property

Cases

Glencore Canada Corporation v. Canada, 2024 FCA 3

An integrated nickel-mining public company (“Falconbridge”), entered into merger agreements with a more junior public company (“Diamond...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Compensation Payments break fee was a capital receipt 188
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property break fee was not consideration for the disposition of a merger right as there was no such “right” 215
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) break fee was includible under s. 12(1)(x) 318

See Also

Chagnon v. The Queen, 2011 DTC 1205 [at 1216], 2011 TCC 268

The taxpayer, a former president of a corporation, sought to deduct legal fees arising from his successful defence to an action, in which the...

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Cormier v. MNR, 90 DTC 1167, [1990] 1 CTC 2295 (TCC)

On the sale of all the shares of a corporation the purchaser agreed to pay to the corporation's manager a "retirement allowance" equal to the...

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Reed Estate v. MNR, 89 DTC 457, [1989] 2 CTC 2333 (TCC)

A principal residence was a "capital property" within the meaning of ss.54(b) and 80(1)(b), and its adjusted cost base accordingly was available...

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Administrative Policy

3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 6, 2023-0994241C6 F - Consequences of Transfer of DSUs to a corporation

In finding that the rights of an employee under a deferred share unit plan described in Reg. 6801(d) were not cap[ital property, and not eligible...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement transfer of DSU to corporation would cause it to cease to qualify, perhaps retroactively 240
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1.1) DSU rights are not eligible property and not capital property 62

6 October 2017 APFF Roundtable Q. 7, 2017-0709051C6 F - Dédommagement-annulation d'une offre d'achat

In 2016-0652851C6 F, as a result of breach of a purchaser's obligation to purchase a personal residence, the individual vendor received $50,000 in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A if damages relate to a particular asset of a business that was not disposed of, they will reduce the asset’s cost 104

13 June 2016 External T.I. 2016-0637031E5 - Capital property excludes ECP

The distinction between a capital property (a property giving rise to a capital gain) and an eligible capital property (a property giving rise to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) concepts of capital property and eligible capital property do not overlap 111

21 December 2012 Internal T.I. 2009-0327221I7 - Paragraph 7(1)(e) - Death of a Taxpayer

After noting that a deceased employee would be deemed under s. 7(1)(e) to dispose of unexercised stock options at fair market value on death, CRA...

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10 December 2004 Internal T.I. 2004-0082341I7 F - Dissolution d'un syndicat

A union ceased operations and distributed all its net funds to its members in amounts based on their respective seniority. CRA indicated that a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(j) liquidating distribution to union members required to be allocated first to taxable refund of dues, and balance to proceeds of disposition of their memberships 185

18 December 2003 Internal T.I. 2003-0044007 F - OPTION D'ACHAT D'ACTIONS RACHETEES

The taxpayer surrendered his stock options to his arm’s-length employer for consideration that was payable partly up front and partly in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) full option surrender consideration included under s. 7(1)(b) even though a portion thereof never paid 170
Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) unpaid and defaulted balance of stock option surrender consideration was not property used in a property or business source 284

27 April 1998 External T.I. 9800145 - non-competion agreements, client lists

A lump-sum payment received by the individual shareholder of a corporation upon a sale by that corporation of one of its business divisions and in...

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30 October 89 T.I. (March 1990 Access Letter, ¶1146)

The disposition of money in Canadian currency would not result in a capital gain or capital loss. Therefore, money is not a capital property for...

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