Estoppel

Table of Contents

Commentary

A useful summary of estoppel as it may be applied in tax matters was provided by Bowman TCJ in Goldstein:

"Estoppels come in various forms -...

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Cases

Kufsky v. Canada, 2022 FCA 66

A shareholder loan balance that was owing by the taxpayer was eliminated through dividend declarations backdated to the three preceding years and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) per majority, taxpayer estopped from arguing that she had not received a dividend when she had already pocketed at tax benefit from submitting the contrary 552
Tax Topics - General Concepts - Fair Market Value - Other property transfer amount not determined net of income taxes 76
Tax Topics - General Concepts - Onus prima facie case requires a balance of probabilities 237
Tax Topics - General Concepts - Payment & Receipt dividend was paid by way of retroactive set-off against shareholder loan account 174
Tax Topics - General Concepts - Illegality dividend declared and paid by insolvent corporation would be valid 301

Tuccaro v. Canada, 2014 DTC 5103 [at 7210], 2014 FCA 184

The taxpayer's tax appeal was based on an alleged exemption, in an aboriginal treaty ("Treaty 8"), from all taxation. The motions judge found...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Stare Decisis prior finding about the meaning of an aboriginal treaty was a finding of fact, not of law 164
Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 prior decision on treaty was finding of fact, not law 164

Ludmer v. The Queen, 95 DTC 5311, [1995] 2 CTC 16, [1996] 3 CTC 74 (FCA)

The taxpayers sought to show that the Minister's decision to allow an interest deduction for their taxation years prior to 1981 constituted an...

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Duthie Estate v. The Queen, 95 DTC 5376, [1995] 2 CTC 157 (FCTD)

The taxpayer was not estopped from taking the position, for the first time, in his 1984 return that personal-use real estate had been converted...

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The Queen v. Jasper, 94 DTC 6519, [1994] 2 CTC 309 (FCTD)

After noting that no argument had been raised concerning possible estoppel against the Crown arising from a letter provided by the Winnipeg...

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Optical Recording Corp. v. The Queen, 86 DTC 6465, [1986] 2 CTC 454, [1986] 2 CTC 325, 86 DTC 6569 (FCTD), aff'd 87 DTC 5248, [1987] 1 CTC 417

Revenue Canada illegally told the taxpayer that collection of the amount payable by the taxpayer pursuant to s. 195(2) would not be attempted...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) notice of assessment that did not assess tax that was yet due was a nullity 187
Tax Topics - Income Tax Act - Section 195 - Subsection 195(2) 31

The Queen v. Metropolitan Properties Co. Ltd., 85 DTC 5128, [1985] 1 CTC 169 (FCTD)

The fact that prior to the 1974 taxation year, the Department had permitted the taxpayer's predecessor corporations to deduct certain types of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 10 - Subsection 10(1) cost of municipal services included in accordance with GAAP in cost of residential home development inventory 102
Tax Topics - Income Tax Act - Section 9 - Accounting Principles 79

384238 Ontario Limited v. The Queen, 84 DTC 6101, [1984] CTC 523 (FCA)

The appellant and its shareholder, by continuing to indicate to the public at large that the shareholder rather than the appellant was the owner...

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Cornforth v. The Queen, 82 DTC 6058, [1982] CTC 45 (FCTD)

Although the taxpayer represented in his returns that no partnership existed between him and his wife, the Minister in assessing on the basis that...

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Wilchar Construction Ltd. v. The Queen, 81 DTC 5318, [1981] CTC 415 (FCA)

The taxpayer was estopped from changing its method of accounting for holdbacks and uncertified progress claims after the taxation year in question...

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Brown v. The Queen, 79 DTC 5421, [1979] CTC 476 (FCTD)

A trustee gave evidence that he was assured by Departmental "officials that if the estate did not deduct from its income [pursuant to s. 104(6)]...

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The Queen v. Moulds, 78 DTC 6068, [1978] CTC 146 (FCA)

The taxpayer, in 1966, agreed to withdraw his notice of objection in relation to his 1964 taxation year provided that the Minister reduce the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 68 100

Hnatiuk v. The Queen, 76 DTC 6376, [1976] CTC 632 (FCTD)

The partnership in which the taxpayer was a partner terminated on May 31, 1969, but in his 1970 return he reported income from the partnership on...

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See Also

Pastuch v. The Queen, 2022 TCC 36

The taxpayer, who had appealed reassessments of three of her taxation years for which CRA had added approximately $2.8M in shareholder benefits to...

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Locations of other summaries Wordcount
Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 86 issue estoppel to precluded reviewing compellability of 3rd-party documents - and witness notes not established to be relevant 248

Carvest Properties Limited v. The Queen, 2021 TCC 21, aff'd 2022 FCA 124

The appellant (“Carvest”), which was in the business of developing, owning and renting out apartment buildings in southern Ontario, had...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 191 - Subsection 191(1) condo registration of a rental apartment building meant that the rental units were HST self-supplied based on comparable condo sales 406
Tax Topics - General Concepts - Fair Market Value - Land rental apartment building units that were registered as condo units for municipal tax purposes were to be valued based on comparable condo sales 220

Landbouwbedrijf Backx B.V. v. The Queen, 2021 TCC 2

Smith J rejected the Appellant’s argument that because the Minister had accepted its 1998 to 2008 returns in which it had reported itself as a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(c) no application because taxpayer became a Canadian resident prior to the property's acquisition 246
Tax Topics - Treaties - Income Tax Conventions - Article 4 Dutch legal expert testimony was required in order to establish dual corporate residency - and failure to engage competent authorities 632
Tax Topics - General Concepts - Evidence need to adduce expert legal evidence as to tax residency in foreign jurisdiction 88

International Hi Tech Industries Inc. v. The Queen, 2018 TCC 107 (Informal Procedure)

A corporation (“Garmeco”) had made timely claims for input tax credits for GST on legal invoices (based on alleged advice of a CRA official...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 225 - Subsection 225(4) - Paragraph 225(4)(b) timely but invalid claiming of ITCs by parent did not now permit sub to claim them after 4 years 217

St-Pierre v. The Queen, 2017 TCC 69, rev'd 2018 FCA 144

A private corporation that sold eligible capital property in 2008 declared a capital dividend in the year in an amount which included the untaxed...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2) judicial nullification rather rectification of a premature capital dividend declaration gave rise to a s. 15(2) income inclusion 501
Tax Topics - General Concepts - Unjust Enrichment taxpayer was unjustly enriched when he received capital dividends that subsequently were declared to not have been validly paid as dividends 85

Dundurn Street Lofts Inc. v. The Queen, 2010 TCC 553

The appellants and Mr. Adam Stelmaszynski were convicted on two counts of fraud and two counts of attempted fraud for claiming false ITCs in GST...

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Harvest Operations Corp v. A.G. (Canada), 2015 DTC 5067 [at 5904], 2015 ABQB 327

A debtor transferred assets to an affiliated creditor in order to repay debt of approximately $170 million owing by it. However, the conveyance...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Rectification & Rescission requested rectification order to fix bump did not match parties' specific plan at closing 614
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) failure to fund debt repayment through increased purchase price 162

Szymczyk v. The Queen, 2014 TCC 380 (Informal Procedure)

The taxpayer's employer, General Motors of Canada Limited, assigned a new vehicle to the taxpayer and about 350 other senior managers or...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Onus Minister's "partly arbitrary" assumptions did not remove onus from taxpayer 333
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) late designation not permitted/rule-of-thumb method invalidated by s. 6(1)(k) 201
Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) separate personal use kilometers required for each vehicle used in year 183

Yourkin v. The Queen, 2014 DTC 1071 [at 3032], 2014 TCC 48 (Informal Procedure)

The taxpayer argued that he was not bound by a consent judgment divorce settlement because he had not signed the underlying minutes of settlement,...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Res Judicata taxpayer's seventh collateral attack on the same consent judgment 137

Mosher v. The Queen, 2014 DTC 1026 [at 2654], 2013 TCC 378

The taxpayer's husband was reassessed in 2002 to include $500,000 in income, but died intestate in 2007 before his appeal was heard. His estate...

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Klundert v. The Queen, 2013 DTC 1166 [at 910], 2013 TCC 208, aff'd 2014 DTC 5087 [at 7098], 2014 FCA 155

The taxpayer had been convicted of tax evasion by the Ontario Superior Court. He appealed his assessment of those same taxation years to the Tax...

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Kreuz v. The Queen, 2012 DTC 1201 [at 3514], 2012 TCC 238 (Informal Procedure)

The taxpayer had succeeded in an appeal from a prior taxation year, in which the taxpayer's motor vehicle expenses were deductible under s....

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741290 Ontario Inc. v. The Queen, 2011 DTC 1089 [at 489], 2011 TCC 91, aff'd 2012 DTC 5025 [at 6665], 2011 FCA 361

In a prior decision, the Tax Court had found that the taxpayer's directors were protected from liability for unremitted source deductions under s....

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Res Judicata 168

742190 Ontario Inc.(Van Del Manor Nursing Homes) v. Canada (Customs and Revenue Agency), 2010 DTC 5104 [at 6945], 2010 FCA 162

The doctrine of issue estoppel barred the Minister from asserting in the Federal Court that Ministerial review requests made by the taxpayer were...

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Cranston v. The Queen, 2010 TCC 414, 2010 DTC 1280 at 3948

The taxpayer was convicted by the Ontario Court of Justice under s. 239 for misrepresenting his income. The Minister then reassessed the...

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Golden v. The Queen, 2008 DTC 3363, 2008 TCC 173

Issue estoppel applied to preclude the taxpayer from litigating before the Tax Court the question whether an amount of $34,000 should have been...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Abuse of Process relitigating an amount determined in criminal sentencing 179
Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) 44

Beauchamp v. The Queen, 2006 DTC 3173, 2004 TCC 371 (Informal Procedure)

Before going on to reject the taxpayer's argument respecting estoppel, Tardif J. found (at p. 3179) that the doctrine of estoppel cannot be...

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Humphrey v. The Queen, 2006 DTC 2730, 2006 TCC 168 (Informal Procedure)

After referring to the principle that no estoppel can arise where representations made are not in accordance with the law, Bowman C.J. found that...

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Stremler v. The Queen, 2000 DTC 1757 (TCC)

The Crown was unsuccessful in a submission that the taxpayers were estopped from alleging that properties held by them were inventory rather than...

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Desrochers v. The Queen, 2000 DTC 962 (TCC)

The taxpayer was estopped from disputing the existence of a partnership between her and her husband, having previously induced the Minister to...

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Goldstein v. The Queen, 96 DTC 1029, [1995] 2 CTC 2036 (TCC)

The Department was not bound by what was found to be an erroneous interpretation of the definition of "earned income" in s. 146(1)(c). Bowman,...

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Taylor v. The Queen, 95 DTC 591, [1995] 2 CTC 2133 (TCC)

The doctrine of promissory estoppel was found to be inapplicable to supposed agreements of the Minister not to assess penalties and interest, as...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) 65

Byrt v. MNR, 91 DTC 923, [1991] 2 CTC 2174 (TCC)

In reliance upon a letter of the taxpayer stating that he resigned as director of a corporation on August 1, 1985, the Minister did not assess the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(3) 94

IRC v. Garvin, [1981] 1 WLR 793 (HL)

In obiter dicta, Lord Russell of Killowen "venture[d] to doubt the ability of the Crown ... having levied a tax on the basis that the transaction...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) presumption against taxation both as capital and income receipt 57

Articles

Timothy Fitzsimmons, "Advanced Warning", CA Magazine, August 2008, p. 30

Discussion of Sentinel Hill Decision.