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The ARQ considered there to have been abusive surplus-stripping, and applied the Quebec general anti-avoidance rule to treat $499,950 of the paid-up capital distribution made to each of Charles and Philippe to be a deemed dividend. ...

Morrison also participated in the “CHT Program” under which they or other clients would make a cash donation to a registered charitable foundation (Foundation A), apply to be considered as a potential Class A beneficiary of CHT, which was a trust, CHT would then distribute certificates to the successful applicant supposedly representing entitlements to pharmaceuticals, and the client would donate those certificates to a registered charitable foundation. ...

The Queen, 2018 TCC 225, rev'd in part on "advantage" issue (for subsequent years) 2019 FCA 255-- summary under Subparagraph (b)(i) Summary Under Tax Topics- Income Tax Act- Section 207.01- Subsection 207.01(1)- Advantage- Paragraph (b)- Subparagraph (b)(i) temporal limitation placed on the advantages considered to arise from TFSA swap transactions From May 15 to October 17, 2009, the taxpayer directed 71 “swaps” under which TSX-listed shares were transferred between her self-directed tax-free savings account (“TFSA”) and her taxable trading account (“CDN”) at TD Waterhouse Discount Brokerage (“TDW”), or between her TFSA and her self-directed registered retirement savings plan (also with TDW). ...

In rejecting the taxpayers’ submissions that “all circumstances, including personal family circumstances and personal estate planning goals must be considered” (para. 90) and that the income and loss allocation methodology could be supported from the standpoint of estate planning objectives, he stated (at paras. 94, 97): [T]he reasonable business person would only consider factors relevant to their own business considerations having regard to their own business interest. ...

In allowing the Crown’s cross-appeal for those years, Dawson JA stated (at paras 75, 77 and 82): [T]he Tax Court’s concern about “when or how far into the future an advantage … will be considered as attributable to” abusive transactions did not justify a restrictive interpretation of the definition of advantage. … The ability to waive an advantage tax and reset an individual’s unused TFSA contribution room are the mechanisms intended to address the future impact of abusive transactions. … The anti-avoidance purpose of sections 207.01 and 207.05 supports a broad interpretation of the definition of “advantage”. … [W]hile the increase in value in the TFSA in 2010 and 2012 was directly attributable to the performance of the shares held in the TFSA each year, it was indirectly attributable to the swap transactions which increased the number of shares held in the TFSA and their value. ...

Favreau J then stated (at paras. 92-93): Since the MGICs, as a group of persons, controlled the Federation and the Federation controlled ProRé, the MGICs must be considered to also control ProRé by virtue of the simultaneous control principle set out in subsection 256(6.1) of the ITA, both immediately after and immediately before the disposition by the MGICs of the Class A shares of ProCap to ProRé. ...

However, KIK’s representatives (KPMG) immediately contacted the officer by email for an explanation and made submissions, and as part of further email exchanges the officer clarified that the items were not considered “same condition” as they were not exported in the same condition as imported since by filling the containers with a substance, a new product was created. ...

In also rejecting the single property argument, Fournier JCQ stated (at paras 551-552): [T]he assets acquired under the … franchise agreement must be considered separately for tax shelter determination purposes because they have different tax characteristics. ...

After noting (at para. 55) that the Canadian Pioneer case ([1980] 1 S.C.R) had found that the meaning of “banking … should be based on a formal, institutional approach rather than a substantive approach, in the sense of the functions of banking” so “that the use of the term ‘bank’ in the name of the entity, and whether it is regulated, are factors to be considered, rather than the actual activities that are conducted”, Woods JA found that the Tax Court had erred in finding that there was an implied requirement in “banking” that the receipt side of the business have an element of competition and that “the exclusion does not apply if a business simply manages its own funds “ (para. 57) and, indeed “Parliament has not explicitly required competition as an element of the foreign bank exclusion” para. 60). ...

Accordingly, the “refund” cannot be properly considered a tax refund owing to Mr. ...