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The Queen, 2016 TCC 172, aff'd 2018 FCA 124-- summary under Paragraph 20(1)(cc) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(cc) legal fees incurred in securing regulatory approval for a hostile bid related to the bidder's business of earning income from shares and interaffiliate sales The taxpayer, a Canadian public company listed on the TSX and NYSE and in Europe, incurred substantial legal fees in connection with its decision to make a hostile bid for a French public company (“Pechiney”). ...

The Queen, 2016 TCC 172, aff'd 2018 FCA 124-- summary under Subsection 169(2.1) Summary Under Tax Topics- Income Tax Act- Section 169- Subsection 169(2.1) raising general question of deductibility of fees and listing s. 20(1)(e) did not satisfy s. 165(1.11) In its Notice of Objection, the taxpayer (a large corporation) raised the issue as to whether expenses incurred by it in connection with a hostile bid “were deductible in the computation of the income of Alcan for the period” and listed various paragraphs of s. 20(1) including s. 20(1)(e), but without otherwise advancing any argument that the expenses were deductible under s. 20(1)(e) – which it did not do until it provided written arguments after the completion of the Tax Court hearing. ...

The evidence did not show that there were excesses in the cost of construction or any specific problems with soil contamination or with the connection infrastructure with municipal services, or any errors of development or construction. ...

The evidence did not show that there were excesses in the cost of construction or any specific problems with soil contamination or with the connection infrastructure with municipal services, or any errors of development or construction. ...

After finding that no portion of the $207.5M difference between these two amounts was deductible interest to Amoco, Hogan J indicated obiter that the $207.5M difference might instead be an addition to the cost to Amoco of its Dome Petroleum shares, stating (at para. 110): Because the full amount was due (although not due and payable or immediately exigible) one could assert that the assumed liability forms part of the Appellant’s cost of the shares of Dome Petroleum, for example, in much the same way that legal expenses incurred but not yet paid in connection with the execution of a purchase and sale agreement for shares are included in the cost of those shares. ...

General Provisions termination payment that did not come within s. 6(4) should be treated as excluded from s. 6(1)(a) In connection with the Nortel asset distributions, a Nortel health and welfare trust made lump sum payments in 2011 to a benficiary in satisfaction of her entitlement for the trust to pay the periodic premiums for life insurance policies on her life (giving rise to income inclusions to her under s. 6(4)). ...

The Queen, 2018 TCC 85-- summary under Subsection 104(1) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(1) Quebec trusts are considered to be owners of their property for ITA purposes The taxpayers, in connection with arguing (at para. 62) that the reference in the preamble to s. 256(1.2)(f)(ii) to “shares … owned.. by a trust” should be interpreted as referring only to shares that had been earmarked under the deed of trust for the beneficiaries, went on to argue (para. 1261) that, having regard to Art. 1261 of the Civil Code, a Quebec trust was not the owner of the property in its patrimony. ...

Such surrenders occurred (and were previously contemplated in agreements with purchaser corporations to occur) in connection with the acquisition of all their shares by unrelated corporate purchasers. ...

Cameo also incurred disbursements in connection with its appeal of $17.9M. ...

The Queen, 2019 TCC 149-- summary under Paragraph (b) Summary Under Tax Topics- Excise Tax Act- Section 169- Subsection 169(1)- Element B- Paragraph (b) services respecting proposed development of a property did not constitute a use of the property The appellant (“137ON”), which was a corporation owned by members or affiliates of the Foley family that owned 10 residential rental properties, including a house on a 10 acre parcel (the “Subject Property”) which it was seeking to develop as a commercial storage site, received services from individuals or companies associated with the Foley family in connection with such property development. ...