Urbandale Realty Corp. Ltd. v. The Queen, 2000 DTC 6118 (FCA)

The taxpayer, a real estate developer, prepaid municipal real estate development charges applicable to one of its residential lots developments. Noël J.A., in finding that current deduction of the charges was not precluded by s. 18(9)(a)(i), noted that the charge, being a one-time tax, was not paid in respect of a future period.

The taxpayer, a real estate developer, prepaid municipal real estate development charges applicable to one of its residential lots developments. In finding that the deduction of the charges, in full, in the year paid gave a more accurate picture of the taxpayer's income notwithstanding that GAAP would have required addition of the charges to the taxpayer's cost of land inventory, Noël J.A. noted that there was no evidence that payment of the charges increased the fair market value of the lands.