Search - connection

Invoices/receipts in connection with any asset purchased/disposed; 3.             ... There was no nexus or connection or documentation or otherwise for the $305,000. ...

In short, there was no connection between any account receivable and any account paya-’ ble: in the business of the broker they were completely independent of each other. ... To use the words employed by Rowlatt, J in Scales v George Thompson and Company Limited, [1927] 13 TC 83, on the facts of this case there was between the broker’s business and the investments an inter-connection, an interlacing, an interdependence, a unity embracing the investments and the business. ...

In Canada that confidentiality is required, in circumstances such as the present, by section 241(2) of the Income Tax Act which states that no official shall be required in connection with any legal proceedings to testify as to information obtained on behalf of the Minister for the purposes of the Act. ... _to any person any taxpayer information," and that "no official shall be required, in connection with any legal proceedings, to give or produce evidence relating to any taxpayer information. ...

See also s 139(l)(ae) of the Income Tax Act which includes as “personal and living expenses” and therefore not deductible for tax purposes, the expenses of properties maintained by the taxpayer for his own use and benefit, and not maintained in connection with a business carried on for profit or with a reasonable expectation of profit. ... —“personal or living expenses” includes (a) the expenses of properties maintained by any person for the use or benefit of the taxpayer or any person connected with the taxpayer by blood relationship, marriage or adoption, and not maintained in connection with a business carried on for profit or with a reasonable expectation of profit, On the basis of the principle established by section 3 of the Act, therefore, people involved in farming activities should normally come into two groups only: those for whom farming is not a business but a hobby, who do not expect profit from their farming activities and whose expenses in farming must simply be treated as non-deductible “personal or living expenses” and the others whose loss sustained in carrying on their farming activities would be deductible from their total income as any other business loss. ...

In this connection s. 3(2)(c)(i) refers to the Income Tax Act, which has long provided in s. 251(1): first, that "related persons" are deemed not to be dealing with each other at arm's length when they enter into a contract, "related persons" being taken to mean (according to s. 251(2)):      251. (2) For the purposes of this Act, "related persons", or persons related to each other, are      (a)      individuals connected by blood relationship, marriage or adoption;      (b)      a corporation and          (i)      a person who controls the corporation, if it is controlled by one person,          (ii)      a person who is a member of a related group that controls the corporation, or          (iii)      any person related to a person described in subparagraph (i) or (ii); and     ...      251. (2) Aux fins de la présente loi, des "personnes liées" ou des personnes liées entre elles, sont      a)      des particuliers unis par les liens du sang, du mariage ou de l'adoption;      b)      une corporation et          (i)      une personne qui contrôle la corporation si cette dernière est contrôlée par une personne,          (ii)      une personne qui est membre d'un groupe lié qui contrôle la corporation, ou          (iii)      toute personne liée à une personne visée au sous-alinéa (1) ou (ii);         ... and, second, that "unrelated" persons may occasionally be regarded as not dealing at arm's length in view of the special conditions in which their dealings took place. 4 So the legislative technique is different from what it was previously, in that the exclusion does not apply to the spouses directly but to all persons who are "related"; however, because of the presumption established by s. 251(2)(a) of the Income Tax Act, the exclusion relating to the spouses remains the same, unless an exception to the peremptory nature of the presumption is adopted. ... However, in a recent judgment this Court undertook to reject that approach, and I take the liberty of citing what I then wrote in this connection in the reasons submitted for the Court: 9          The Act requires the Minister to make a determination based on his own conviction drawn from a review of the file. ...

Paragraph 8(1)(f) sets forth deductions that may be made by an employee whose employment is in connection with the selling of property or the negotiating of contracts. ... (f) where the taxpayer was employed in the year in connection with the selling of property or negotiating of contracts for the taxpayer's employer, and (i) [...] ...

The Tax Court of Canada’s Decision [30]   After setting out the relevant facts, the contextual background, the parties’ positions and his key factual findings, the Judge framed the principal issues before him as follows (at paragraphs 47 and 48 of his reasons): [47] Is the amount claimed by the Appellant in connection with the Key Transactions deemed to be interest under subsection 16(1) of the ITA? ... Hence, the expenses incurred by Amoco in connection with the aforesaid agreements did not constitute running expenses and that “[t]his is particularly true with respect to the Appellant’s undertaking to Encor to repay $225 million owed to APCJ under the exploration loan instead of Encor” (Reasons, paragraph 31). [34]   Second, the Judge stated that the appellant had not been entirely candid in response to questions in discovery about the treatment of the Key Transactions in its financial records. ...

.— Gross income derived by a corporation organized in a foreign country from the international operation of a ship or ships if such foreign country grants an equivalent exemption to corporations organized in the United States. 5 This “effective connection” is established by various factors, one of which, admittedly, is Norsk’s place of management. 6 Since this is a determination of foreign law, it is a finding of fact. ... The reason for which Norsk is liable to tax in the United States is not because its place of management is located in the United States, but because the trade or business it conducts is effectively connected with the United States, that connection being established, amongst various factors, by Norsk’s place of management. ...

There will be no need to reproduce at such length the paragraphs of the July, 1972 letter following the first two quoted above, first because they are only important in connection with the 1970 letter, and second because the tone is now set and the wording often overlaps that of 1970. ... In this connection, with the utmost respect, I do not think that there was evidence of the fact that the agreement “was to be implemented in two stages”, the first in 1970 and the second in 1972, or that it is relevant to the issue as it was joined in this Court; or of the fact that the employees to whom the share purchase scheme applied were "key employees” or "senior employees”; or the fact that "the principle" of the transformation of Cemp Holdings Ltd. into a public corporation “was undoubtedly established at that time”; or the fact that “the purpose of the operation was to give effect to the Bronfman family’s wish in 1970 to compensate a number of its senior employees by giving them an opportunity to participate in the ready-made profits which the transformation of Cemp Holdings Ltd. into a public corporation... could make for its owners”. ... Having said that, the fact remains that one constant rule may be deduced from the case law, which Faribault 10 [10] summarized as follows: such a clause "is a stipulation in favour of the seller only, and the purchaser cannot take advantage of it". [11] In this connection, it seems very useful to refer to the observations of Anglin, J. in Gagnon, at page 373: It is quite unnecessary, and, in my opinion, unwarranted, to attribute them (the parties) the extraordinary purpose of enabling the purchaser to relieve himself of his contractual obligations by making default in fulfilling them. ...

The Reference Assets Net Asset Value, in turn, constantly fluctuates over time, depending on both the composition and the performance of the individual hedge fund investments; GAM calculates the Reference Assets Net Asset Value on each Monday, with the exception of public holidays, on an aggregate and per investment basis; The “Maturity Date” of each Note is the “Stated Maturity Date” of November 30, 2016 or, if applicable, the “Early Termination Date”; The “Early Termination Date” is the date on which any cure period, notice period or extension period expires in connection with an “Early Termination Event” (namely, SLT may terminate the Notes if the credit rating of the Canadian parents of the issuing banks falls below certain thresholds, if material adverse changes in tax laws occur in any country impacting SLT or the majority of its shareholders, and if, for any reason whatsoever, it provides a prior notice of not less than 367 days to the issuing banks); The amounts payable in settlement of the Notes upon maturity or early termination is an amount reflecting the value of the Reference Assets at that time, or in certain cases, the sales proceed of their orderly disposition; The obligations of the issuer under the Notes are each guaranteed by BNS and TD, respectively; Upon request, SIL provides shareholders of SLT with a put facility equal to the purchase price of all or a portion of its shares. [10]   The key feature of the Notes to keep in mind is that after they were purchased, their value was derived from the value of the Reference Assets, which was in constant flux. ... The proper characterization of a commercial, contractual, business, work, or family relationship for purposes of the application of the federal Act will generally need to be determined in accordance with, or least after considering, the provincial law applicable to the relationship or transactions. [9] This limitation is compounded by the fact that Canada is a bijural common-law/civil law country and, in this case, the Appellant has some direct or indirect connections to the province of Quebec. […] [13] In short, the Court in this case is answering the particular question referred to it as best it can. ... Offshore investment fund property Bien d’un fonds de placement non-résident 94.1 (1) Where in a taxation year a taxpayer, other than a non-resident-owned investment corporation, holds or has an interest in property (in this section referred to as an “offshore investment fund property”) 94.1 (1) Lorsque, au cours d’une année d’imposition, un contribuable, autre qu’une société de placement appartenant à des non-résidents, détient un bien ou a un droit sur un bien (appelé « bien d’un fonds de placement non-résident » au présent article) qui répond aux conditions suivantes: (a) that is a share of the capital stock of, an interest in, or a debt of, a non-resident entity (other than a controlled foreign affiliate of the taxpayer or a prescribed non-resident entity) or an interest in or a right or option to acquire such a share, interest or debt, and a) il est une action du capital-actions d’une entité non-résidente (autre qu’une société étrangère affiliée contrôlée du contribuable ou une entité non-résidente visée par règlement) ou une participation dans une telle entité, ou une créance sur elle, ou un droit sur une telle action, participation ou créance ou un droit ou une option d’achat d’une telle action, participation ou créance; (b) that may reasonably be considered to derive its value, directly or indirectly, primarily from portfolio investments of that or any other non-resident entity in b) sa valeur peut raisonnablement être considérée comme découlant principalement, directement ou indirectement, de placements de portefeuille de cette même entité ou de toute autre entité non-résidente: (i) shares of the capital stock of one or more corporations, (i) en actions du capital-actions d’une ou de plusieurs sociétés, (ii) indebtedness or annuities, (ii) en créances ou en rentes, (iii) interests in one or more corporations, trusts, partnerships, organizations, funds or entities, (iii) en participations dans un ou plusieurs fonds ou organismes ou dans une ou plusieurs sociétés, fiducies, sociétés de personnes ou entités, (iv) commodities, (iv) en marchandises, (v) real estate, (v) en biens immeubles, (vi) Canadian or foreign resource properties, (vi) en avoirs miniers canadiens ou étrangers, (vii) currency of a country other than Canada, (vii) en monnaie autre que la monnaie canadienne, (viii) rights or options to acquire or dispose of any of the foregoing, or (viii) en droits ou options d’achat ou de disposition de l’une des valeurs qui précèdent, and it may reasonably be concluded, having regard to all the circumstances, including et que l’on peut raisonnablement conclure, compte tenu des circonstances, y compris: (c) the nature, organization and operation of any non-resident entity and the form of, and the terms and conditions governing, the taxpayer’s interest in, or connection with, any non-resident entity, c) la nature, l’organisation et les activités de toute entité non-résidente, ainsi que les formalités et les conditions régissant la participation du contribuable dans toute entité non-résidente ou les liens qu’il a avec une telle entité; (d) the extent to which any income, profits and gains that may reasonably be considered to be earned or accrued, whether directly or indirectly, for the benefit of any non-resident entity are subject to an income or profits tax that is significantly less than the income tax that would be applicable to such income, profits and gains if they were earned directly by the taxpayer, and   d) la mesure dans laquelle les revenus, bénéfices et gains qu’il est raisonnable de considérer comme ayant été gagnés ou accumulés, directement ou indirectement, au profit de toute entité non-résidente sont assujettis à un impôt sur le revenu ou sur les bénéfices qui est considérablement moins élevé que l’impôt sur le revenu dont ces revenus, bénéfices et gains seraient frappés s’ils étaient gagnés directement par le contribuable; (e) the extent to which the income, profits and gains of any non-resident entity for any fiscal period are distributed in that or the immediately following fiscal period, e) la mesure dans laquelle les revenus, bénéfices et gains de toute entité non-résidente pour un exercice donné sont distribués au cours de ce même exercice ou de celui qui le suit, that one of the main reasons for the taxpayer acquiring, holding or having the interest in such property was to derive a benefit from portfolio investments in assets described in any of subparagraphs 94.1(1)(b)(i) to 94.1(1)(b)(ix) in such a manner that the taxes, if any, on the income, profits and gains from such assets for any particular year are significantly less than the tax that would have been applicable under this Part if the income, profits and gains had been earned directly by the taxpayer, there shall be included in computing the taxpayer’s income for the year the amount, if any, by which que l’une des raisons principales pour le contribuable d’acquérir, de détenir ou de posséder un droit sur un tel bien était de tirer un bénéfice de placements de portefeuille dans des biens visés à l’un des sous-alinéas b) (i) à (ix) de façon que les impôts sur les revenus, bénéfices et gains provenant de ces biens pour une année donnée soient considérablement moins élevés que l’impôt dont ces revenus, bénéfices et gains auraient été frappés en vertu de la présente partie s’ils avaient été gagnés directement par le contribuable, celui-ci doit inclure dans le calcul de son revenu pour l’année l’excédent éventuel du total visé à l’alinéa f) sur le montant visé à l’alinéa g): (f) the total of all amounts each of which is the product obtained when f) le total des montants dont chacun est le produit de la multiplication du montant visé au sous-alinéa (i) par le quotient visé au sous-alinéa (ii): (i) the designated cost to the taxpayer of the offshore investment fund property at the end of a month in the year (i) le coût désigné, pour le contribuable, du bien d’un fonds de placement non-résident à la fin d’un mois donné de l’année, is multiplied by En blanc (ii) the quotient obtained when the prescribed rate of interest for the period including that month is divided by 12 (ii) le quotient de la division par 12 du taux d’intérêt prescrit pour la période comprenant ce mois; exceeds En blanc (g) the taxpayer’s income for the year (other than a capital gain) from the offshore investment fund property determined without reference to this subsection. g) le revenu du contribuable pour l’année (autre qu’un gain en capital) tiré d’un bien d’un fonds de placement non-résident et déterminé compte non tenu du présent paragraphe. […] […] Definitions for this Subdivision   Définitions applicables à la présente sous-section 95 (1) In this Subdivision, […] 95 (1) Les définitions qui suivent s’appliquent à la présente sous- section. […] foreign accrual property income  of a foreign affiliate of a taxpayer, for any taxation year of the affiliate, means the amount determined by the formula revenu étranger accumulé, tiré de biens S’agissant du revenu étranger accumulé, tiré de biens, d’une société étrangère affiliée d’un contribuable, pour une année d’imposition de la société affiliée, le montant calculé selon la formule suivante: (A + A.1 + A.2 + B + C) – (D + E + F + F.1 + G + H) (A + A.1 + A.2 + B + C) – (D + E + F + F.1 + G + H) Where […] où: […] C is, where the affiliate is a controlled foreign affiliate of the taxpayer, the amount that would be required to be included in computing its income for the year if C lorsque la société affiliée est une société étrangère affiliée contrôlée du contribuable, le montant qui serait inclus dans le calcul du revenu de la société affiliée pour l’année si: (a) subsection 94.1(1) were applicable in computing that income, a) le paragraphe 94.1(1) s’appliquait au calcul d’un tel revenu; (b) the words “earned directly by the taxpayer” in that subsection were replaced by the words “earned by the person resident in Canada in respect of whom the taxpayer is a foreign affil iate”, b) les passages « gagnés directement par le contribuable » au paragraphe 94.1(1) étaient remplacés par « gagnés par la personne résidant au Canada pour qui le contribuable est une société étrangère affiliée »;   (c) the words “other than a controlled foreign affiliate of the taxpayer or a prescribed non-resident entity” in paragraph 94.1(1)(a) were replaced by the words “other than a prescribed non-resident entity or a controlled foreign affiliate of a person resident in Canada of whom the taxpayer is a controlled foreign affiliate”, and c) le passage « (autre qu’une société étrangère affiliée contrôlée du contribuable ou une entité non-résidente visée par règlement) » à l’alinéa 94.1(1)a) était remplacé par « (autre qu’une entité non-résidente visée par règlement ou une société étrangère affiliée contrôlée d’une personne résidant au Canada et dont le contribuable est une société étrangère affiliée contrôlée) »;   (d) the words “other than a capital gain” in paragraph 94.1(1)(g) were replaced by the words “other than any income that would not be included in the taxpayer’s foreign accrual property income for the year if the value of C in the definition foreign accrual property income in subsection 95(1) were nil and other than a capital gain”, […] d) le passage « (autre qu’un gain en capital) » à l’alinéa 94.1(1)g) était remplacé par « (autre qu’un revenu qui ne serait pas inclus dans le revenu étranger accumulé, tiré de biens du contribuable pour l’année si la valeur de l’élément C de la formule figurant à la définition de revenu étranger accumulé, tiré de biens au paragraphe 95(1) était nulle et autre qu’un gain en capital) »; […]   FEDERAL COURT OF APPEAL NAMES OF COUNSEL AND SOLICITORS OF RECORD   Docket: A-335-18 STYLE OF CAUSE: BAREJO HOLDINGS ULC v. ...