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Agence du revenu du Québec, 2023 QCCQ 10441-- summary under Farming Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Farming a greenhouse operation is farming, not manufacturing or processing The Quebec manufacturing and processing credits claimed by the taxpayer in connection with equipment acquired for use by it in its greenhouse cucumber-growing operation turned on whether such equipment was Class 29 property. ...

PepsiCo, Inc v Commissioner of Taxation, [2024] FCAFC 86-- summary under Payment & Receipt Summary Under Tax Topics- General Concepts- Payment & Receipt there can be no payment by direction unless there is an antecedent obligation by the creditor to the third party A U.S. company (PepsiCo) entered into an “exclusive bottling appointment” (“EBA”) with an independent Australian bottling company (the “Bottler”) pursuant to which an Australian subsidiary of PepsiCo (the “Seller”) sold concentrate to the Bottler and PepsiCo granted the Bottler the right to use the Pepsi and Mountain Dew trademarks in connection with its sales of the soft drinks. ...

Expense- Asset Disposal Expense professional fees incurred in pursuing a subsidiary sale but before the deal was struck were capital expenditures The taxpayer, an intermediate UK holding company for subsidiaries in various countries, incurred fees of an accounting firm, Netherlands law firm and an investment banker in connection with the difficult and extended process of effecting a share sale of, or an asset sale by, a Netherlands subsidiary (“Oxxio”). ...

Centrica Overseas Holdings Ltd v Commissioners for His Majesty’s Revenue and Customs, [2024] UKSC 25-- summary under Legal and other Professional Fees Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Legal and other Professional Fees legal and other professional fees incurred re potential sale of subsidiary were capital expenditures The taxpayer, an intermediate UK holding company for subsidiaries in various countries, incurred fees of an accounting firm, Netherlands law firm and an investment banker in connection with the difficult process for accomplishing a share sale of, or an asset sale by, a Netherlands subsidiary (“Oxxio”). ...

Royal Bank of Canada v Commissioners for His Majesty's Revenue and Customs, [2025] UKSC 2-- summary under Separate Existence Summary Under Tax Topics- General Concepts- Separate Existence tax code rests on separate existence of each corporation In connection with finding that a right to work an oil field of a UK subsidiary of a Canadian corporation was not a right of the Canadian corporation to work the field, Lady Rose stated (at para. 88): The idea that an "artificial creation of the legislature", namely a company, has a separate legal personality from its shareholders has been protected and reaffirmed from Salomon v A Salomon & Co Ltd [1897] AC 22 onwards. ...

Before granting the requested order, Blanchard J stated (at paras. 66, 70, TaxInterpretations translation): The de-connection of the corporations prevented the accomplishment of the will of the parties in implementing the reorganization, which was to crystallize the CGD and not pay any tax, other than minimum tax, while benefiting from the CGD.... ...

Agence du revenu du Québec, 2023 QCCQ 10239, aff'd 2025 QCCA 234-- summary under Paragraph 111(1)(a) Summary Under Tax Topics- Income Tax Act- Section 111- Subsection 111(1)- Paragraph 111(1)(a) use of Ontario Newcos to permit profitco to hold pref shares of its lossco parent In connection with a September 2009 loss consolidation transaction between a “Lossco” in the Brookfield group (“BRPI”) and its “Profitco” subsidiary (“BEMI”): Two Ontario Newcos with nominal share capital were lent $2.25 billion and $0.525 billion by BRPI pursuant to unsecured demand notes bearing interest at 14%; Each Newco used the loan proceeds to subscribe for non-cumulative preferred shares of BRPI; On the same day, BEMI acquired the Newcos for a nominal amount and they were wound up into BEMI, so that BRPI held $2.275 billion of loans in its subsidiary, and BEMI held $2.275 billion of preferred shares of its parent; and The loans were left outstanding for approximately five months, then: BRPI declared and paid a dividend on the preferred shares to fund the payment of all the accrued interest on the loans, and those shares and loans were redeemed and repaid by way of set-off. ...

Expense- Financing Expenditures refinancing fees not incurred in the course of earning income The taxpayers incurred various expenditures in connection with retiring existing bonds before maturity and issuing replacement bonds at a lower rate of interest and with less onerous conditions as to payment, including the payment of redemption premiums, disbursements on account of exchange, discounts paid to the underwriters on the issuance of the new bonds, and legal and printing expenses. ...

Regarding QSTA s. 199(c) (similar to ETA s. 169(1) – B(c)), St-Joseph argued based on QSTA s. 42.5 (similar to ETA s. 141.1(3)(a)) that it had incurred the costs “in connection with the … termination of a commercial activity” of it, so that such costs were deemed to have been incurred in the course of its commercial activity. ...

Turning to QSTA s. 199(c) (similar to ETA s. 169(1) – B(c)), she went on to reject an argument of St-Joseph based on QSTA s. 42.5 (similar to ETA s. 141.1(3)(a)) that it had incurred the costs “in connection with the … termination of a commercial activity” of it, so that such costs were deemed to have been incurred in the course of its commercial activity. ...