Search - considered

Once the ninety-day period has gone by, the assessment is considered final and neither an objection to the assessment nor an amended return will be accepted. ... The taxpayer alleged that there had been an agreement between himself and the Minister that the taxpayer would not object to assessments for the 1961 to 1964 taxation years provided that the Minister would allow the profit in 1965 and 1966 to be considered as a non-taxable capital gain. ...

An amount received or receivable (depending upon the method regularly followed in computing income) by a taxpayer for granting the farmer permission to use the taxpayer’s marketing quota (for example, tobacco, egg, milk or grain) is considered to be income and will be treated as income from farming if the taxpayer is engaged in a farming business. The sale of the actual quota by a farmer would be considered to be the disposition of an eligible capital property. ...

As Lord Justice Clerk so aptly said in deciding whether the gain from the sale of certain shares amounted to a profit from a business taxable as income or was merely a (then) untaxable capital gain in the case of Californian Copper Syndicate v Harris (1904), 5 TC 159 (Ct of Sess) at 166: What is the line which separates the two classes of cases may be difficult to define, and each case must be considered according to its facts; the question to be determined being — Is the sum of gain that has been made a mere enhance- ment of value by realising a security, or is it a gain made in an operation of business in carrying out a scheme for profit-making? ... On the other hand the later decision of the Supreme Court in Irrigation Industries v MNR, [1962] CTC 215; 62 DTC 1131 suggests at 218-19 (DTC 1132-3) that a high level of risk does not mean that the disposition of a property can never be considered a Capital transaction. ...

"principal residence" of a taxpayer for a taxation year means a housing unit, (i) ordinarily inhabited in the year by the taxpayer... except that... in no case shall any such housing unit... be considered to be a taxpayer's principal residence for a year (iii) unless it has been designated by him in prescribed form and manner to be his principal residence for that year and no other such housing unit... has been so designated for that year by him... and for the purposes of this paragraph the "principal residence” of a taxpayer for a taxation year shall be deemed to include... the land subjacent to the housing unit and such portion of any immediately contiguous land as may reasonably be regarded as contributing to the taxpayer's use and enjoyment of the housing unit as a residence.... ... In circumstances where a taxpayer receives incidental rental income from a seasonal residence, such property is not considered to be owned for the purpose of gaining or producing income therefrom. ...

As i understood his refusal to so concede it was predicated upon his position that payment of taxes with respect to the unoccupied land should not be regarded as an income expense but rather because the payment of taxes was with respect to an anticipated building expansion thereon the payments should be considered as capital outlays. ... It is not realistic that the appellant should be considered in isolation. ...

The problem whether royalties received through holding and licensing patents and performing patent licensing agreements should be regarded as profits of a trade was considered by the Court of Appeal in England in C.I.R. v. ... Rather, I think the correct inference is that the appellant had nothing to do and did nothing in 1957 in performance of the agreement or to assist or promote the business of the licensee, because the parent went ahead and did everything that the contract required the appellant to do or which was considered desirable or advantageous. ...

Though the tenant inducement might well be considered reasonable within the meaning of section 67 of the Act, the reality is that the two partners have done no more than move a sum of money from one pocket to the other in the hope that they would reap the benefit of certain tax advantages. ... Thus, I am of the opinion that the agreement to pay the tenant inducement payment of $1.2 million was of no legal consequence and that it cannot be considered an outlay or expense made for the purpose of gaining or producing income within the meaning of paragraph 18(1)(a) of the Act. [20]      Hindsight reveals that the tax strategy pursued by the taxpayers was doomed to failure once the decision was made to acquire and develop the lands through an agent and bare trustee rather than the conventional "holding" corporation. ...

Heckendorn's facts as he has set them out in his Statement of Claim as if proven, except where too far-fetched to be credible and here I do not accept, as if proven, the allegation that the Income Tax Act does not exist. [8]                I have considered the Crown's affidavit material only to the extent that it goes to jurisdiction, or deals with matters said to be frivolous or an abuse of process of the Court, the latter being permissible in that the Defence, in paragraph 15, reserves to the Defendants the ability to argue that the claim is without merit, is an abuse of process and is frivolous. ... Carey Canada Inc. [1990] 2 S.C.R. 959 at 980. [10]            As I have already observed it is established law that the facts alleged in the Statement of Claim are, unless so far-fetched as to be unbelievable, for the purposes of the motion considered as if proven. ...

Analysis [8]      Subsection 56(4) of the Act states: Where a taxpayer has, at any time before the end of a taxation year, transferred or assigned to a person with whom the taxpayer was not dealing at arm's length the right to an amount (other than any portion of a retirement pension assigned by the taxpayer under section 65.1 of the Canada Pension Plan or a comparable provision of a provincial pension plan as defined in section 3 of that Act) that would, if the right had not been so transferred or assigned, be included in computing the taxpayer's income for the taxation year, the part of the amount that relates to the period in the year throughout which the taxpayer is resident in Canada shall be included in computing the taxpayer's income for the year unless the income is from property and the taxpayer has also transferred or assigned the property. [9]      The transfer of the right to trailer fees has never been considered under subsection 56(4). ... Hicks considered would continue to be personally accountable for providing the services after the incorporation. ...

Dale (supra), considered that this finding was inconclusive, and that there was fallacy in the use of the word ‘‘enduring’’, and stated that “What Lord Cave is quite clearly speaking of is a benefit which endures, in the way that fixed capital endures, not a benefit which endures in the sense that for a good number of years it relieves you of a revenue payment.’’ ... And, therefore, I am unable to find that by ceasing to use the main valve testing tool in 1958 the appellant could be considered to be pro tanto going out of any part of its business. ...