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Fisher accepted the determination made by the taxpayer of a bad debt allowance in connection with the transfer of his retail fur business to a corporation controlled by him. ...

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. ...

Profit- Debt/ receivables infrequent acquisitions of mortgages at a discount occurred as a sideline personal investing activity The taxpayer, a lawyer, who acquired approximately 1 1/2 mortgages per year at a discount out of his personal savings and who made the acquisitions only after he concluded they were safe investments, realized a $700 discount on the mortgage in question for $7,100 as an accretion to capital rather than in connection with an adventure in the nature of trade. ...

Canada, 2010 DTC 5172 [at at 7304], 2010 FCA 280-- summary under Sham Summary Under Tax Topics- General Concepts- Sham trust deed did not reflect the factual expectatons of the settler and trustee A purported Barbados trust that was used in connection with a tax plan to avoid Canadian capital gains tax on the disposition of shares of a corporation was found not to exist at the time of a purported sale of shares by the purported trust given that the settler never intended to lose control of the shares to the Barbados trustee, or of the money resulting from their sale, he did not sign the trust deed until after the sale of the shares to the third party, and the shares were not validly transferred to the trust (and, in fact, at the relevant time, they could not be so transferred because they were subject to the security interest of a third party). ...

The Queen, [2002] GSTC 124 (TCC)-- summary under Subsection 141.01(2) Summary Under Tax Topics- Excise Tax Act- Section 141.01- Subsection 141.01(2) s. 141.01 was apportionment provision not applying where registrant only making taxable supplies A Canadian public company ("Nowsco") that was engaged in the provision of oil field services incurred significant fees for services rendered by financial advisors and a law firm in connection with seeking a "white knight" following the commencement of a takeover bid for its shares, as a result of which it was able to secure a higher price for its shares from the original bidder. ...

Canada, 2014 FCA 289-- 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 fees incurred to preserve reputation and income-earning capacity were capital expenditures The taxpayer who was the CEO of an income trust and the holder, through a personal holding company of 8.1% of its units, and who provided consulting services through that or a related company, incurred $2.1 million in legal fees in connection with charges brought against him by the OSC (which ultimately were withdrawn) alleging that he and other senior employees had misstated the financial statements and a class action brought against various parties including the taxpayer, which ultimately was settled. ...

In that finding this sum was an income receipt Woods J. noted that the claim of the taxpayer (as evidenced by its brief and memorandum filed in connection with the infringement litigation) was for lost profits rather than damage to its goodwill, that the action of the competitor did not in fact damage the taxpayer's patents in the sense of any diminution in the taxpayer's statutory rights under the Patent Act and that the fact that the parties came to a compromise and settled for an amount that bore no relationship to the profits lost by the taxpayer did not change the nature of the interest of the taxpayer that was settled. ...

Minister of National Revenue, 66 DTC 5280, [1966] CTC 391, [1966] S.C.R. 685-- summary under Income-Producing Purpose Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose legal exepnses incurred in challenging US assessments- deductible Before concurring with Martland and Spence JJ. that legal expenses incurred by the taxpayer in connection with challenging potential assessments against its income by the U.S. revenue authorities were deductible, Hall J. stated (at pp. 5286, 5292): A company such as the appellant exists to make a profit. ...

…[T]he expenditures should be viewed as ordinary expenditures incurred in connection with the day-to-day management of the rental property. ...

La Reine, 2012 DTC 1076 [at at 2856], 2011 TCC 438 (Informal Procedure)-- summary under Subsection 5(1) Summary Under Tax Topics- Income Tax Act- Section 5- Subsection 5(1) Archambault J. found that "bursary" amounts that the taxpayer received from the University of Laval in connection with his postdoctoral fellowship at that university were employment income rather than amounts described under s. 56(1)(n) (scholarship, bursary, fellowship or prize for achievement), because his work was in the nature of "employment" under Quebec civil law. ...