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The Queen, 2016 TCC 252-- summary under Sale Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Sale University purchased books for educational supply rather than a transfer of their ownership to students Athabasca University, which provided online courses to its students and delivered printed books to them without any additional charge, was entitled to a GST rebate on its purchases of the books provided that it could be considered, as required by ETA s. 259.1(2) to have acquired the Books “otherwise than for the purpose of supply by way of sale.” Lyons J applied the single supply doctrine to find that, as the University was making a single supply of education (a service) to its students, it should be considered to have acquired the books for this “ultimate” purpose rather than for the purpose of merely transferring their ownership to the students. ...

For tax purposes, a bare trust is considered a non-entity in the sense that a beneficiary as principal, is considered to deal directly with property through the trustee as agent or nominee. ...

Green, 2017 FCA 107-- summary under Paragraph 111(1)(e) Summary Under Tax Topics- Income Tax Act- Section 111- Subsection 111(1)- Paragraph 111(1)(e) upper-tier LP not required to compute income and therefore not subject to s. 111(1)(e) CRA considered that business losses incurred by lower tier partnerships (the PSLPs) were deemed to be limited partnership losses of an upper-tier LP (MLP) – which meant that they were effectively trapped in MLP given that s. 111 (and, thus, the ability to deduct limited partnership losses under s. 111(1)(e)) was only available to a taxpayer and not to a partnership such as MLP. Webb JA rejected this interpretation and considered that the PSLP business losses were also business losses rather than limited partnership losses in the hands of MLP, so that such losses could be allocated to the MLP partners in the same manner as if they had been generated in a single-tier LP. ...

However in cases where the payments are made for purchase of software as a product, the consideration paid cannot be considered to be for use of the right to use the software. ... State of Andhra Pradesh (2004) 271 ITR 401 (SC)]… Clearly, the consideration paid for purchase of goods cannot be considered as ‘royalty’. ... Ltd [(2011) 332 ITR 222(Del)], this Court had reiterated the view that payment made by a reseller for the purchase of software for sale in the Indian market could by no stretch be considered as royalty.” ...

Therefore, for U.S. tax purposes, GL&V LP was considered to have made loans directly to, and received interest directly from, Holdings. ... On the other hand, if (on a broader construction) the U.S. taxes were considered to be paid in respect of such dividends because those dividends were indirectly derived from the interest paid by Holdings, the US taxes should be considered to be paid by the taxpayer in respect of the dividend income sourced from the LLC (a foreign affiliate), so that the foreign affiliate exclusion in (ii) above applied. ...

How can the plaintiff challenge the presumption of correctness of the notices of assessment where the 7.89% rate, considered to be reasonable and adopted by the defendant, falls within the range that its own expert considered to be a reasonable rate based on the current rates in the market for obligations with similar considerations and risks during the period in litigation? Doubtless, the rate of 7.89% corresponds to the lowest rate in the range, but it nonetheless is within that range and cannot be considered to be prima facie unreasonable. ...

Addy J stated (at p. 5521) that "the rental of films in Canada as in the United States forms an essential and integral part of the business of the plaintiff and that the revenues from film rentals must necessarily be considered as reasonably attributable to the business which was carried on in Canada." In particular, although "none of the production costs are incurred here and therefore none of the benefits directly attributable to the quality of production originate here…this does not mean...that the revenues themselves are not to be considered as reasonably attributable to an active business of the plaintiff carried on in Canada nor does it mean that some proportion of the revenues is to be excluded" (p. 5519). ...

The Court reversed the Tax Court, where Miller J. found that in determining the amount of the 1991 loss that was available to be deducted by the taxpayer in 1993, the Minister was entitled and required to apply the ordering provisions of s. 11(3), so that the amount of the 1991 loss that should be considered to have been utilized by the taxpayer in its 1989 taxation year was higher than the $5.8 million originally considered by the taxpayer to have been so applied. ...

The taxpayer should be considered to be a resident of the U.S. for purposes of the U.S. Treaty, and its income should be considered to be subject to full and comprehensive taxation under the U.S. ...

., 2004 DTC 6475, 2004 FCA 234-- summary under Subsection 248(10) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(10) a transaction with an independent purpose and existence nonetheless can form part of a common law series Normal course dividends paid by two public corporations (“CU” and “CUH”) which gave rise to a Part IV tax refund were considered part of the series of transactions that included s. 85(3) deemed to be received by CU and CUH in connection with a reorganization of another public company (“ATCOR”) and an acquisition by a third party (“Forest”) because, although they had an independent purpose and existence, they were part of the series of transactions that included such deemed dividends received by CU and CUH, and were appropriately assessed pursuant to s. 55(2). Rothstein JA stated (at paras. 65, 67): If the parties intend that a transaction with an independent purpose and existence will assist in achieving this composite result [of it and other transactions] and have the ability to ensure that the independent transaction is carried out and the transaction is in fact carried out, the independent transaction will be considered a part of the series. … The facts that CU and CUH intended to use both the ATCOR/Forest transactions and the normal course dividends to achieve their tax avoidance objective, that they had the ability to ensure that all the transactions would occur, and that all the transactions did indeed occur as intended are sufficient to constitute them all part of a common law series for the purposes of subsection 55(2). ...