Cases
Canada (The King) v. MICROBJO PROPERTIES INC., 2023 FCA 157
In rejecting the taxpayers’ submission that the introduction of s. 160(5) confirmed its narrow reading of s. 160(1), Noël C.J. stated (at para....
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| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | a transaction that split, on the purchaser’s terms, a tax savings purportedly generated by it, was a non-arm’s length transaction | 701 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | parties were not dealing at arm's length in transactions where they did not put their own patrimony in play | 370 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | taxpayers did not intend to avoid (and were oblivious to) s. 160 | 265 |
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(5) | s. 160(5) did not change the prior view that prior facts could be taken into account | 96 |
Canada v. Oxford Properties Group Inc., 2018 FCA 30
In the course of finding on other grounds that an amendment (in s. 88(1)(d)(ii.1)) was consistent with the pre-amendment object and spirit of the...
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| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | using the s. 88(1)(d) bump on newly-formed rental property LPs to avoid indirect recapture income under s. 100(1) was abusive | 975 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | s. 88(1)(d) bump is intended to permit the transfer of ACB that otherwise would be lost to another property that is taxed in the same way | 371 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | s. 98(3)(c) bump is intended to avoid gain realization where there has been no economic gain | 267 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | 3-year time limitation in s. 69(11) did not establish safe harbor for avoidance of recapture on sale after that period | 382 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) | purpose is to ensure that latent recapture will be recognized on sale to tax exempt | 254 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | object includes ultimate taxation of the deferred gain | 234 |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | GAAR question as to determining a provision’s object was subject to correctness standard | 169 |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | statement that amendment was for “clarification” was self-serving | 209 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | consequential s. 245(2) adjustment must be scaled to the abuse | 391 |
CIBC World Markets Inc. v. Canada, 2011 FCA 270
Stratas JA found that in the years in question there was no provision requiring that the choice of method by the registrant for computing input...
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| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(5) | no implied irrevocability of choice of method | 177 |
| Tax Topics - Statutory Interpretation - Inserting Words | no implied irrevocability of election | 24 |
Zen v. Canada (National Revenue), 2010 DTC 5109 [at 6979], 2010 FCA 180
The taxpayer, who had been assessed under s. 227(10) for his joint liability under s. 227.1 for the taxes of the corporation of which he was a...
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| Tax Topics - Income Tax Act - Section 227 - Subsection 227(10) | unnecessary to issue further assessments for interest that accrued on the director's liability | 40 |
Silicon Graphics Ltd. v. Canada, 2002 DTC 7113, 2002 FCA 260
After referring to a subsequent amendment to the definition of Canadian-controlled private corporation, Sexton J.A. stated (at p. 7118) that "the...
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| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | U.S. public shareholders not a group; no de facto control by lender/licensor | 345 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | must be right to affect board or directly influence shareholders | 187 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(6) | 65 | |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | 23 | |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 64 |
Waltz v. The Queen, 2001 DTC 462 (TCC)
Dussault T.C.J. stated (at p. 468) that s. 45(2)
"Does not mean however that it cannot be inferred from the context of an amendment that the...
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| Tax Topics - Income Tax Act - Section 79 | 142 |
The Queen v. Mara Properties Ltd., 95 DTC 5168, [1995] 2 CTC 86 (FCA), rev'd 96 DTC 6309, [1996] 2 S.C.R. 161
The enactment of s. 249(4) in 1987, whose provisions would have prevented the taxpayer from acquiring a corporation with an accrued but unrealized...
MCA Television Ltd. v. The Queen, 94 DTC 6375 (FCTD)
MacKay J. found that no assistance as to the meaning of the phrase "motion picture films" should be derived from subsequent amendments to the...
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| Tax Topics - General Concepts - Evidence | 104 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | 225 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 48 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 97 |
Woodward Stores Ltd. v. The Queen, 91 DTC 5090, [1991] 1 CTC 233 (FCTD)
Before finding that the introduction of paragraph 12(1)(x) effected a change in the law, Joyal J. stated (p. 5100):
"[s.45(2)] simply states that...
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| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | 85 | |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | tax-free fixturing allowances | 85 |
Indalex Ltd. v. The Queen, 86 DTC 6598, [1986] 2 CTC 482 (FCA)
It was noted that the use of "for greater certainty" language in S.164(4.1) precluded the application of the maxim inclusio unius est exclusio...
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| Tax Topics - Income Tax Act - Section 164 - Subsection 164(4.1) | 107 |
French Shoes Ltd. v. The Queen, 86 DTC 6359, [1986] 2 CTC 132 (FCTD)
In light of s. 45(2) of the Interpretation Act, it was held that it was not permissible to infer that the enactment of s. 12(1)(x) was an...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | 79 | |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | 79 |
The Queen v. B.B. Fast & Sons Distributors, 86 DTC 6106, [1986] 1 CTC 299 (FCA)
A comparison of s. 256(1)(e) with s. 39(4) of the pre-1972 Act helped establish that in s. 256(1)(e) Parliament intended that the shareholding of...
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| Tax Topics - Income Tax Act - Section 256 - Subsection 256(1) - Paragraph 256(1)(e) | 92 |
The Queen v. Canada Southern Railway Co., 86 DTC 6097, [1986] 1 CTC 284 (FCA)
An amendment to regulation 805(1) was not intended to change its meaning.
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| Tax Topics - Income Tax Regulations - Regulation 805 | dividends, being themselves income from property, were not exempted notwithstanding their commercial connection to the recipinent's business | 334 |
Oceanspan Carriers Ltd. v. The Queen, 85 DTC 5621, [1986] 1 CTC 114 (FCTD), aff'd in part 87 DTC 5102, [1987] 1 CTC 210 (FCA)
The enactment of s. 111(8)(c) did not effect a change in substance to the Act.
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| Tax Topics - Statutory Interpretation - Territorial Limits | non-application to previous non-resident existence | 41 |
British Columbia Forest Products Ltd. v. The Queen, 84 DTC 6391, [1984] CTC 409 (FCTD), rev'd 85 DTC 5577, [1986] 1 CTC 1 (FCA)
Semble, that it does not transgress ss. 45(2) and (3) of the Interpretation Act to refer to a subsequent amendment to a provision to establish...
Falconbridge Nickel Mines Ltd. v. Min. of Rev. (Ont.), [1981] CTC 120 (Ont.C.A.)
A provision providing that the Minister of Revenue "may" refund overpayments of taxes, was amended to read that taxes that have been overpaid...
The Queen v. Dorchester Drummond Corp. Ltd., 79 DTC 5163, [1979] CTC 219 (FCTD)
It was impermissible to infer from the enactment of subsection 18(2), which provided for the capitalization of realty taxes in situations where...
See Also
Canada (National Revenue) v. Cameco Corporation, 2019 FCA 67
In rejecting the Crown’s position that the word “audit” in the power under in s. 231.1(1)(a) to “inspect, audit or examine” encompassed...
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| Tax Topics - Income Tax Act - Section 231.1 - Subsection 231.1(1) - Paragraph 231.1(1)(a) | Minister cannot under s. 231.1(1) compel oral answers to its questions other than for aid in auditing taxpayer books and records | 339 |
| Tax Topics - Statutory Interpretation - Ejusdem Generis | 3rd word in phrase was limited by focus on other 2 words | 138 |
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | CRA’s broad interpretation of s. 231.1(1)(a) would render s. 231.1(1)(d) redundant | 172 |
Oxford Properties Group Inc. v. The Queen, 2016 TCC 204, rev'd 2018 FCA 30
In connection with rejecting an argument that it was an abuse to bump an LP interest under s. 88(1)(d) and sell the bumped LP interest to a...
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| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no abuse in using 88(1)(d) bump to avoid s. 100 after 3-year s. 69(11) period | 557 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | subsequent sale part of series as it utilized the benefit of previous LP packaging transactions | 383 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | purpose not to tax underlying recapture on subsequent LP unit sale | 431 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | purpose: to push down ACB of shares of sub to qualifying non-depreciable property | 489 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) | S. 100 operates only on outside basis gain | 290 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | Parliament provided safe harbour for sales after 3 years | 204 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | purpose: to preserve high outside basis through push down | 293 |
Mathieu v. The Queen, 2014 TCC 207
After rejecting a Crown submission that option surrender benefits realized by the taxpayer (which it acknowledged were not taxable under s. 7(1))...
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| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(a) | separated wife was related | 173 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) | non-arm's length option surrender proceeds were exempted by s. 7(3)(a) | 150 |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | stock option rules more specific than employee benefits | 55 |
Black v. The Queen, 2014 DTC 1046 [at 2882], 2014 TCC 12, briefly aff'd 2014 FCA 275
In 2002, the taxpayer was resident both in Canada and the U.K. for domestic tax purposes, but by virtue of Art. 4, para. 2(a) of the Canada-U.K...
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| Tax Topics - Statutory Interpretation - Other/Conflicting Statutes | presumption against inconsistency | 99 |
| Tax Topics - Treaties - Income Tax Conventions - Article 29 | Treaty residence not domestically applicable | 281 |
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | Treaty residence not domestically applicable | 244 |
Silicon Graphics Ltd. v. The Queen, 2001 DTC 379 (TCC), rev'd supra.
Teskey T.C.J. rejected a submission that he should look to a subsequent amendment of the Act to determine the proper interpretation of provisions...
Canadian Occidental U.S. Petroleum Corp. v. The Queen, 2001 DTC 295 (TCC)
After rejecting a submission that he should look to a subsequent version of s. 17 of the Act in light of s. 45 of the Interpretation Act, Bowman...
HSC Research Development Corp. v. The Queen, 95 DTC 225, [1995] 1 CTC 2283 (TCC)
O'Connor TCJ. noted (at p. 231) that "notwithstanding subsection 45(2), the courts have taken account of amendments in construing the amended...
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| Tax Topics - Income Tax Act - Section 127.1 - Subsection 127.1(2) - Excluded Corporation | "controlled ... indirectly" referred to de jure control prior to s. 256(5.1) | 131 |
Sameden Oil of Canada, Inc. v. Provincial Treasurer of Alberta (1993), 102 DLR (4th) 125 (Alta. C.A.)
A provision of the Alberta Corporate Tax Act requiring a taxpayer to "deliver" a return by a given date was replaced by a requirement that the...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(7) | 105 |
CIR v. Hang Seng Bank Ltd., [1990] BTC 482 (PC)
Lord Bridge applied the statement in Cape Brandy Syndicate v. IRC, [1921] 2 K.B. 403 at 414 "'that subsequent legislation on the same subject may...
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| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | situs of trading business was where trades occurred | 191 |