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A loss realized by the taxpayer when it sold its portfolio of employee receivables to a bank in connection with "cleaning up" its balance sheet for a public offering was a capital loss. ...

A loss realized by the taxpayer when it sold its portfolio of employee receivables to a bank in connection with "cleaning up" its balance sheet for a public offering was a capital loss. ...

., 85 DTC 5014, [1985] 1 CTC 1 (FCTD), rev'd 89 DTC 5404 (FCA)-- summary under Loans and Financing Charges Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Loans and Financing Charges The taxpayer guaranteed the obligations of its subsidiary ("MKH") and a subsidiary in turn of MKH ("Holdings") to pay interest on bank loans incurred in connection with a business acquisition by Holdings. ...

Profit- Partnership Interests After the Toronto Stock Exchange required the termination of what was styled as a loan agreement, but which in fact was a partnership agreement, under which five parties (the "Creditors") including the taxpayer received a share of the profits earned by another individual ("Purcell") in connection with his purchase of a seat on the Toronto Stock Exchange, they entered into an agreement which provided for the payment to the Creditors of the sum of $550,000, of which $300,000 was described as "the share of the Creditors in the net profits of the business for the fiscal year ending March 31, 1956". ...

The Queen, 2005 TCC 92-- summary under Illegality Summary Under Tax Topics- General Concepts- Illegality Act applied to what has occurred irrespective of legality In rejecting a submission that the trustee for a bankrupt company was not authorized by the Bankruptcy and Insolvency Act to engage in a "litigation support business" of providing assistance to most of the creditors in connection with their action sounding in negligence against company's former auditors, C&L for $800 million in damages, Archambault J stated (at paras. 33-4): [T]he Trustee, acting as agent for the Estate, was legally entitled to carry on the undertaking in question. … In any event, I would add that the Act is not to be applied to transactions that ought to have taken place, nor is it to be applied only to transactions that could be legally carried out. ...

Minister of National Revenue, 67 DTC 5277, [1967] CTC 396, [1968] S.C.R. 59-- summary under Paragraph (c) Summary Under Tax Topics- Income Tax Act- Section 66.1- Subsection 66.1(6)- Canadian exploration expense- Paragraph (c) An agreement between the taxpayer and its parent corporation was characterized as an agreement to pay for a contractual right to acquire an interest in lands on which exploration and drilling had taken place by paying expenses already incurred by the parent in connection therewith, rather than as an agreement under which the taxpayer itself incurred exploration or drilling costs in respect of lands in which it had an interest. ...

., 98 DTC 6604, [1999] 2 CTC 178 (FCA)-- summary under Paragraph 20(1)(c) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c) guarantee re personal loan The taxpayer's husband borrowed $20,000, on the security of a mortgage on a rental property, to pay legal costs in connection with a civil suit unrelated to the rental property, with the taxpayer guaranteeing her husband's loan. ...

The Queen, 90 DTC 6322 (FCA) was distinguished on the grounds that here there was no connection between the loans and the original cost of the residence and that in that decision, "the Federal Court of Appeal did not have put to it nor did it consider the implications of barter" (p. 1147). ...

Expense- Shareholder Assistance The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net of working capital, in consideration for advice provided in connection with considering alternatives to maximize shareholders' value, with an emphasis on merger possibilities. ...

The Minister disallowed all the taxpayer's business deductions in connection with the franchise, on the basis that there was no business activity, and that the franchise and note were shams entered into predominantly for tax reasons. ...