Search - connection

In the words of its counsel in his opening remarks at trial: (1) “scientific research expenditures incurred by it are of a capital and not of an income nature, and are not deductible in computing profits under the jurisprudential rules developed by the Courts over a period of many years in connection with the income tax.” (2) “scientific research expenditures are not related to the production of prime metal, and thereby are not deductible by virtue of the language of Regulation 1201.” 4 The trial judge in the Federal Court accepted the first argument and ruled that the research expenses in question were of a capital nature, having been incurred to secure an asset or advantage for the enduring benefit of the trade. ...

He manufactures his lumber for sale, and, as a general rule, would not manufacture any specific lumber for use in connection with his building contracts, but would simply take lumber for these purposes from the general stock manufactured for sale, and might thus, under the view taken in the court below, escape taxation on all lumber thus diverted from the general stock manufactured for sale. ...

It is not suggested that any part of the amount in question on this appeal was paid in any way in connection with the cancellation of any policy. ...

Hare [13], where promotion expenses incurred by coalmasters in connection with two parliamentary [Page 25] bills giving authority to construct a line to serve the coalfield were held to be capital expenditures. ... A further [Page 26] appeal to the Judicial Committee of the Privy Council was dismissed in 1934, and in that year the respondent expended the sum of $48,560.94 as costs and expenses in connection with this litigation. ... This sum represents the company's solicitor and client costs in connection with an unsuccessful action brought against it by the United Gas and Fuel Company of Hamilton, Limited. ...

AND WHEREAS his pension rights will cease entirely if he voluntarily severs his connection with the said Company and its affiliates. ... AND WHEREAS the grantor holds a substantial interest in Federated Petroleums Limited, is of the opinion that the grantee's experience, capabilities and connections would be valuable to that Company, and is very desirous of persuading the grantee to resign from his present position in order that he may then be free to accept an offer of employment from Federated Petroleums Limited. ... Warwick 10 was a case in which the employee, for a consideration, turned over to the employing company his extensive personal connection in the insurance business, which he had previously been entitled to retain for himself. ...

The operation in connection with which these disbursements were made was simply this: Capital was borrowed at an agreed rate of interest for the purpose of repaying to the creditors the existing debt in respect of borrowed capital for which the company was paying a more onerous rate of interest. ... The particulars of the disbursements made by the Company in connection with this operation were as follows: (i) Interest on new bonds from September 16, 1935, to December 31, 1935, until when interest had to be paid on both the old and new bonds $23,207.54 (ii) Various expenses on retiring the old bonds and issuing the new bonds 12,484.92 (iii) Discount on issue of new bonds 28,000.00 (iv) Premium paid upon retirement of issue of old bonds 69,140.00 (v) Exchange premium paid on retirement of old bonds 36,744.81 $169,577.27 The first two items of expenses mentioned above were charged directly against the earnings for 1935. ... In the United States, expenses incurred in connection with the refunding or retirement of bond issues are governed by a set of rules issued by the Treasury Department in 1938, and it is probable that there, under such rules, the disbursements here would be allowed as deductions. ‘ ‘ He was, however, of opinion that "‘substantially, what took place here was the redemption and renewal in part of an existing capital obligation from the proceeds of a fresh capital obligation”..... ...

Subsection (4) provides that ‘‘Any payment made to any person in connection with any duty, office or employment... shall be salary of such person and taxable as income for the purposes of this Act.’’ ... In my view this reasoning is equally applicable to payments made to a person ‘‘in connection with’’ an office or employment. In the case at bar it is perfectly clear that the payment in question was made in connection with the appellant’s office as chairman and as remuneration therefor. ...

Provision was made whereby the Town could under certain conditions and at the end of any ten year period purchase the respondent’s rights under the agreement and its property used in connection therewith. ... It is a well-known term in connection with patents and copyrights. In a business sense in Canada, it covers the payments which were to be, and were, paid monthly by way of percentages of the actual gross sales (to quote paragraph 4 of the assignment), ‘‘of natural gas under the said Franchise’’. ... Dominion Natural Gas Co., [1934] A.C. 435, Lord Macmillan, speaking for the Judicial Committee, points out that the by-law of the Town of Barton and the realtive agreement there in question conferred what was correctly designated as a ‘‘franchise’’, and that in Canadian local government law the term is not used with the technical signification which it possessed in other connections. ...

The following profits shall not be liable to taxation under this Act: (b) the profits of a profession carried on by an individual or by individuals in partnership if the profits of the profession are dependent wholly or mainly upon his or their personal qualifications and if in the opinion of the Minister little or no capital is employed: Provided that this exemption shall not extend to the profits of a commission agent or person any part of whose business consists in the making of contracts on behalf of others or the giving to other persons of advice of a commercial nature in connection with the making of contracts unless the Minister is satisfied that such agent is virtually in the position of an employee of one employer in which case this exemption shall apply and in any case the decision of the Minister shall be final and conclusive. ... He is not a commission agent, nor, as we have seen, does his business consist in the making of contracts on behalf of others, nor in the giving to other persons advice of a commercial nature in connection with the making of contracts. ... The following profits shall not be liable to taxation under this Act: (b) the profits of a profession carried on by an individual or by individuals in partnership if the profits of the profession are dependent wholly or mainly upon his or their personal qualifications and if in the opinion of the Minister little or no capital is employed: Provided that this exemption shall not extend to the profits of a commission agent or person any part of whose business consists in the making of contracts on behalf of others or the giving to other persons of advice of a commercial nature in connection with the making of contracts unless the Minister is satisfied that such agent is virtually in the position of an employee of one employer in which case this exemption shall apply and in any case the decision of the Minister shall be final and conclusive * * * Assuming, without deciding, that the appellant's occupation falls within the meaning of the word "profession" as used in this clause, and without passing upon the submission of counsel for the respondent that the opinion of [Page 427] the Minister that little or no capital is employed has not been obtained, I think that this argument cannot prevail. ...

The bequests were made "absolutely conditional" upon both charities agreeing within the period of six (6) months immediately following my death to pay, and upon each of them paying, respectively, to the complete exoneration of my Trustees and my estate, one-half of all succession duties and inheritance and death taxes, whether imposed by or pursuant to the law of this or any province, state, country, or jurisdiction whatsoever, that may be payable in connection with … any gift or benefit given by … this Will or any Codicil thereto, … The will continued: In the event of the refusal or failure of either or both of the aforementioned charitable organizations to accept and to perform the conditions hereinbefore set out in this paragraph (6)(c) imposed on them, then the bequests in their favour hereinbefore contained and set forth shall lapse and determine absolutely, and my Trustees shall hold and stand possessed of the said Charities Fund upon trust, firstly, to pay out of the said fund all succession duties and inheritance and death taxes …; and I hereby authorize my Trustees to pay any such duty or tax prior to the due date thereof or to commute the duty or tax on any interest in expectancy; and secondly, to add any balance of the Charities Fund remaining in their hands after making such payments of duties and taxes to the Annuitants Fund as a part thereof … [Page 149] The charities elected to perform the conditions, and in the assessment of duties the Minister, taking the view that the benefit to the legatees of the tax exoneration was itself a succession, held it in turn subject to tax. ... The bequests to the said East Toronto General Hospital and the First Avenue Baptist Church hereinbefore contained and set forth are absolutely conditional upon both of the said charitable organizations agreeing within the period of six (6) months immediately following my death to pay, and upon each of them paying, respectively, to the complete exoneration of my Trustees and my estate, one-half of all succession duties and inheritance and death taxes, whether imposed by or pursuant to the law of this or any province, state, country, or jurisdiction whatsoever, that may be payable in connection with any insurance on my life or any gift or benefit given by me either in my lifetime or by survivorship or by this my Will or any Codicil thereto, and whether such duties and taxes be payable in respect of estates or interests which fall into possession at my death or at any subsequent time. In the event of the refusal or failure of either or both of the aforementioned charitable organizations to accept and to perform the conditions hereinbefore set out in this paragraph (6) (c) imposed on them, then the bequests in their favour hereinbefore contained and set forth shall lapse and determine absolutely, and my Trustees shall hold and stand possessed of the said Charities Fund upon trust, firstly, to pay out of the said fund all succession duties and inheritance and death taxes whether imposed by or pursuant to the law of this or any province, state, country or jurisdiction whatsoever, that may be payable in connection with any insurance on my life or any gift or benefit given by me either in my lifetime or by survivorship or by this my Will or any Codicil thereto, and whether such duties and taxes be payable in respect of estates or interests which fall into possession at my death or at any subsequent time; and I hereby authorize my Trustees to pay any such duty or tax prior to the due date thereof or to commute the duty or tax on any interest in expectancy; and secondly, to add any balance of the Charities Fund remaining in their hands after making such payments of duties and taxes to the Annuitants Fund as a part thereof and thereafter to deal with the Annuitants Fund as so augmented in the same manner as the said Annuitants Fund is hereinbefore directed to be dealt with in paragraph (6)(b) of this Clause IV of my Will. ...