Search - connection

In finding that the HST incurred by Look on its related litigation costs qualified for input tax credits by virtue of being incurred in connection with the termination of its commercial activity so as to engage s. 141.1(3), Webb J.A. stated (at paras 17, 18 and 34): …[T]he litigation should be characterized as a claim for overpaid remuneration. ... Therefore, there is a connection between the termination of Look’s commercial activity and the legal services acquired in relation to the litigation against the Former Executives that would be sufficient to permit Look to claim the input tax credits …. ... However, if the registrant is acquiring a property or a service in connection with the acquisition, establishment, disposition or termination of a commercial activity, that person will not lose the entitlement to claim an input tax credit solely because that person is not making any taxable supplies at the time that such property or service is acquired. ...

Canada, [2000] GSTC 109 (FCA)-- summary under Subsection 169(1) Summary Under Tax Topics- Excise Tax Act- Section 169- Subsection 169(1) cloth acquired to be made into farming work clothes was acquired in connection with the farming commercial activity In finding that heavy cloth purchased by a Hutterian colony (which was engaged in a farming business) to be made into work clothes for its members was eligible for the ITCs claimed by the colony for 50% of the GST payable on the purchases, Malone J.A. indicated (at para. 25): Once an item is found to be acquired and used in connection with the commercial activities of a GST registrant and that item directly or indirectly contributes to the production of articles or the provision of services that are taxable, then an ITC is available using the formula in that subsection. In a dissenting opinion, Evans J.A. agreed with the majority that "for the goods to be acquired for use 'in the course of commercial activities', there must be a functional connection between the needs of the business and the goods" (para. 31), but disagreed as to whether the connection was sufficient on the present facts. ...

Canada, 2010 DTC 5101, 2010 FCA 159-- summary under Territorial Limits Summary Under Tax Topics- Statutory Interpretation- Territorial Limits no filing requirement if no connection with Canada Nöel, J.A. noted (at para. 23) that when s. 150(1) formerly simply provided that in the case of a corporation, a return shall be filed by a corporation for each taxation year, "with respect to non-resident corporations, the obligation to file could only extend to those that had some connection with Canada. To construe the provision as applying in the absence of any connection with Canada would give it a reach that could not have been intended. ...

In finding that the taxpayer was not "controlled, directly or indirectly in any manner whatever, by one or more non-resident persons", Sexton J.A. noted (at para. 33) authorities suggesting "that a common connection must exist amongst the majority shareholders in order for them to compose a 'group of persons'," found that the quoted phrase was synonymous to control by a non-resident person or group of non-resident persons, that "'control' necessitates that there be a sufficient common connection between the several persons referred to in that definition in order for there to be control by those several persons" (para. 35) and that "the common connection might include, inter alia, a voting agreement, an agreement to act in concert, or business or family arrangements" (para. 36). Here, there was no evidence of any common connection among the non-resident shareholders. ...

., 74 DTC 6180, [1974] CTC 209 (FCA)-- summary under Paragraph 20(1)(e) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e) In connection with the interim construction of a building, the taxpayer agreed in 1962 to pay interest on the borrowed money at a rate of 9%, plus "additional interest", in each of the 25 years after 1964 in which it was profitable, of 1% of its gross rental income from the building. ... "What appears to me to be the test is whether the expense, in whatever taxation year it occurs, arose from the issuing or selling or borrowing... the words 'in the course of' in section 11(1)(cb) are not a reference to the time when the expenses are incurred but are used in the sense of 'in connection with' or 'incidental to' or 'arising from' and refer to the process of carrying out or the things which must be undertaken to carry out the issuing or selling or borrowing for or in connection with which the expenses are incurred" (p. 6183). ...

Because the taxpayer was already suspended from the practice of law when the fees were incurred, they could not have been incurred in connection with any commercial activity. The taxpayer's argued that referral fees he received for referring clients to other lawyers was a commercial activity entitling him to the input tax credits, but the Court found there was no connection between that activity and the fees he incurred in his criminal defence. ...

., 92 DTC 6123, [1992] 1 CTC 183 (FCA)-- summary under Paragraph (a) Summary Under Tax Topics- Income Tax Act- Section 66.1- Subsection 66.1(6)- Canadian exploration expense- Paragraph (a) no connection betweeen lease payments and exploration In finding that annual rental or other payments to provincial governments made for the purpose of keeping leases or licences to subsurface oil and gas rights current were not CEE, Hugessen J.A. stated (p. 6128): "... ... [T]here would have to be at least some connection between that expense and the work actually done on the ground... ...

Canada, 2009 DTC 5940, 2008 FCA 419-- summary under Cumulative Eligible Capital Summary Under Tax Topics- Income Tax Act- Section 14- Subsection 14(5)- Cumulative Eligible Capital A lump sum received by the taxpayer in consideration for the cancellation of a non-competition agreement that it previously had received in connection with an acquisition of a business as a going concern represented proceeds of "disposition" on general principles given that the agreement was extinguished, and also was received on capital account given that (from the perspective of the taxpayer) an acquisition of a non-competition agreement in connection with its business would have been on capital account. ...

Canada, 2012 DTC 5032 [at at 6684], 2011 FCA 352, aff'g 2010 DTC 1351 [at 4335], 2010 TCC 532-- summary under Income-Producing Purpose Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose connection between costs of private jet and any future dividend income was too remote The taxpayer, owned and operated by Mr. ... The significant expenses of a private jet which were incurred primarily in connection with Mr. ... Evans J.A. stated (at para. 14): Byram is relevant in that it recognizes that the connection between an expense incurred by a taxpayer and anticipated dividend income cannot be tenuous or remote. ...

Loss doubted that “losses incurred by disposing of property that is ‘inextricably linked’ to the ongoing operation of the business are on income account” The appellant, a mining contractor, subscribed for shares of two junior mining companies in connection with being awarded mine development work by each company. ... Monaghan JA found no reversible errors in the following findings made by the Tax Court in concluding that the losses were on capital account: [T]he shares “were acquired and held …in connection with [the appellant’s] business”, “were not acquired for trading purposes”, and “constituted an investment …in the equity of the [mining companies]… intentionally [made]…with a view to further strategically enhancing its future growth, and recoveries/cash flow generated from its business.” ...