Cases
PepsiCo, Inc v Commissioner of Taxation, [2024] FCAFC 86
A U.S. company (PepsiCo) entered into an “exclusive bottling appointment” (“EBA”) with an independent Australian bottling company (the...
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| Tax Topics - Treaties - Income Tax Conventions - Article 12 | concentrate purchases by an Australian soft drink bottler could not be recharacterized as trademark royalties for withholding tax purposes | 448 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | sales proceeds for concentrate paid to a Pepsi Australian subsidiary could not be characterized as trademark royalties paid to Pepsi | 226 |
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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| 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 a tax benefit from submitting the contrary | 554 |
| Tax Topics - General Concepts - Fair Market Value - Other | property transfer amount not determined net of income taxes | 76 |
| Tax Topics - General Concepts - Estoppel | a taxpayer received dividends for s. 160 purposes where she was estopped from arguing otherwise or because the corporate insolvency did not matter | 307 |
| Tax Topics - General Concepts - Onus | prima facie case requires a balance of probabilities | 237 |
| Tax Topics - General Concepts - Illegality | dividend declared and paid by insolvent corporation would be valid | 301 |
Canada v. Innovative Installation Inc., 2010 DTC 5175 [at at 7317], 2010 FCA 285
In order to ensure payment of a loan owing by the taxpayer ("Innovative") to a bank (RBC) on the death of Innovative's principal (Mr Peacock),...
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| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account | receipt of insurance proceeds through debt repayment | 156 |
Wannan v. Canada, 2003 DTC 5715, 2003 FCA 423
The quantum of the taxpayer's liability under s. 160 turned upon whether a bankruptcy dividend received by the Crown from the trustee in...
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| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | 129 |
Banner Pharmacaps NRO Ltd. v. Canada, 2003 FCA 367, 2003 DTC 5642 (FCA)
The wholly-owned Canadian subsidiary of the taxpayer declared a dividend, with the resolution stipulating that the dividend was "to be payable by...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(j) | dividends recognized on cash basis | 117 |
| Tax Topics - Income Tax Act - Section 133 - Subsection 133(8) - Non-Resident-Owned Investment Corporation | dividend received when note issued/such note not a money-lenidng business | 227 |
Canada v. Gillette Canada Inc., 2003 DTC 5078, 2003 FCA 22
The replacement of a French-franc note by a Canadian-dollar note with an equivalent principal amount did not give rise to a payment or crediting...
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| Tax Topics - Income Tax Act - Section 15 - Subsection 15(2) | 150 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(13.1) - Paragraph 212(13.1)(b) | 117 |
Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213
In connection with finding that the taxpayer had generated revenues, which were not reflected in its financial statements, from holding leasing...
Piché v. MNR, 93 DTC 5295 (FCA)
Interest owing to the taxpayer as a result of the acceptance by his co-shareholders of his offer to sell his shares in a corporation, was found to...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | interest received upon the receipt of cheque | 100 |
Coppley Noyes & Randall Ltd. v. The Queen, 91 DTC 5291, [1991] 1 CTC 541 (FCTD), varied on appeal 93 DTC 5196, 5508 (FCA).
The taxpayer's practice, in determining its allowance for doubtful accounts at the end of its taxation year on November 27, 1082, included having...
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| Tax Topics - General Concepts - Accounting Principles | 94 | |
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(1) | consistent LIFO use generally is acceptable | 99 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(l) | 92 |
Minsham Properties Ltd. v. Price, [1990] BTC 528 (Ch. D.)
Although "there can be no doubt that a book entry can constitute payment" (p. 540), in the case of an informal loan from the taxpayer's parent...
Cumberland Properties Ltd. v. The Queen, 89 DTC 5333, [1989] 2 CTC 75 (FCA)
On November 24, 1980 the Department of Supply and Services issued a refund cheque to "Cumberland Properties Ltd. c/o John Church", which was the...
C. & E. Commissioners v. Faith Construction Ltd., [1989] BTC 5121 (C.A.)
In response to the proposed repeal effective 1 June 1984 of the zero rating of building alteration services, four building companies with existing...
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| Tax Topics - Excise Tax Act - Section 341 - Subsection 341(1) | 124 |
Parkside Leasing Ltd. v. Smith, [1985] BTC 25 (HC)
Interest paid by cheque was not received on the date that the cheque was received. Instead, the interest was not received until either the date...
Narich Pty. Ltd. v. Commissioner of Pay-roll Tax, [1984] BTC 8019 (PC)
An argument was rejected to the effect that fees received by employees of a company were not wages because they were collected directly from...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 76 |
Western Union Insurance Co. v. The Queen, 83 DTC 5388, [1983] CTC 363 (FCTD)
The sending of a cheque by the lender to (its) solicitors did not constitute the payment of a sum to the borrower.
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| Tax Topics - Income Tax Act - Section 76 | 46 | |
| Tax Topics - Income Tax Act - Section 9 - Interest Income | 89 |
The Queen v. Ans, 83 DTC 5038, [1983] CTC 8 (FCTD)
A company's shareholder was held to have received a bonus when the amount of the bonus payable by the company was credited against the balance...
Mendels v. The Queen, 78 DTC 6267, [1978] CTC 404 (FCTD)
The taxpayer was partner with another dentist in the partnership for their professional practice and tey also jointly owned a corporation (the...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Related Companies | 103 | |
| Tax Topics - Income Tax Act - Section 245 - Old | 103 | |
| Tax Topics - Income Tax Act - Section 9 - Related Companies | 103 |
The Queen v. Canadian-American Loan and Investment Corp. Ltd., 74 DTC 6104, [1974] CTC 101 (FCTD)
The taxpayer, which operated a boat storage business in a storage building, subleased a portion of the leased premises to an affiliate...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) | 83 |
Blauer v. MNR, 71 DTC 5113, [1971] CTC 154 (F.C.T.A.), briefly aff'd 75 DTC 5076, [1975] CTC 112 (SCC)
A post-dated cheque was payable for purposes of ss. 12(1)(l) and 76(1) on its date rather than the date of delivery.
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| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Partnership Interests | 83 |
Hall v. MNR, 70 DTC 6333, [1970] CTC 510 (Ex Ct), briefly aff'd 71 DTC 5217 (SCC)
An individual following the cash method for the recognition of interest income received interest represented by interest coupons on the due dates....
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | sale of matured interest coupons gave rise to interest receipt or amount in lieu | 204 |
Robwaral Ltd. v. MNR, 60 DTC 1025, [1960] CTC 16 (Ex Ct), briefly aff'd 64 DTC 5266 (SCC)
A dividend was "received" by a shareholder in the year in which the cheque was drawn and received by him, rather than in the previous year in...
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| Tax Topics - Income Tax Act - Section 90 - Subsection 90(1) | 67 |
Moody v. MNR, 57 DTC 1050, [1957] CTC 110 (Ex Ct)
In finding that cheques that a cash-basis farmer had on hand at the beginning of the year were income in the previous year when they had been...
Flinn v. MNR, 3 DTC 1157, [1948] Ex. C.R. 272 (Ex Ct)
Dividends on preference shares of a corporation, including those held by the taxpayer, were substantially in arrears. The corporation declared a...
See Also
Sussex Group - Allan Sutton Realty Corp. v. The King, 2024 TCC 1 (Informal Procedure)
The appellant, a real estate brokerage firm, determined (based on agreement between its two employees) that the remuneration paid to them would be...
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| Tax Topics - Income Tax Act - Section 227 - Subsection 227(9) | penalty reversed because Crown could not prove the full amount of remuneration re-allocated by it between two employees | 269 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | salary paid into a spouse’s account but available to the taxpayer was constructively received by her | 203 |
| Tax Topics - General Concepts - Onus | s. 227(9) penalty reversed because Crown could not meet the onus on it to establish the full amount on which it imposed it | 233 |
Ristorante a Mano Limited v. Canada (National Revenue), 2022 FCA 151
The appellant, which operated a restaurant, paid “due-backs” to its servers representing the tips on sales processed on credit and debit cards...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | "but for" test applied in determining payments were "in respect of" employment | 277 |
Clark v HM Revenue and Customs, [2020] EWCA Civ 204
The taxpayer, a retired UK businessman, implemented a scheme to transfer funds (the “Suffolk Life Transfer") from his self-invested personal...
Black v. The Queen, 2019 TCC 135
The taxpayer (“Black”) controlled both Hollinger Inc. (“Inc.”) and Hollinger International Inc. (“International”). The Delaware Court...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) | an ancillary income-earning purpose for making a loan whose terms were never finalized was sufficient to satisfy s. 20(1)(c)(i) | 659 |
| Tax Topics - General Concepts - Effective Date | loan was effective even though never documented and ultimately repudiated | 380 |
Borealis Geopower Inc. v. The Queen, 2018 TCC 189 (Informal Procedure)
Although all the conditions for the receipt of government assistance had not yet been (and never were) satisfied, Campbell J found that the...
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| Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(d) | taxpayer had “physically” received unearned government assistance because it had authority to deal with the funds | 243 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(11) | loss carryback did not reduce late-filing penalty or interest | 278 |
Blott v. The Queen, 2018 TCC 1 (Informal Procedure)
The taxpayer was a market dealer with a securities dealer (“WCM”), which provided support in the form of an assistant, shared with others and...
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| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) | retaining an assistant was not a requirement of employer | 121 |
Markou v. The Queen, 2016 TCC 137
A Quistclose trust (as described by C. Miller J ) provides an equitable remedy to a lender where it has lent to a borrower for a specific purpose...
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| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | TCC had jurisdiction to determine that no lender equitable remedy (under Quistclose trust doctrine) attached to leveraged donation advances | 425 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | TCC has jurisdiction to determine existence of equitable remedy | 96 |
M. Soutar Decor 2000 Ltd. v. The Queen, 2016 TCC 62 (Informal Procedure)
Bocock J found that when a bank seized the security (a GIC) provided by a tax debtor to secure his guarantee of a bank loan to his son’s...
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| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | transfer from guarantor by virtue of seizure of security by tax debtor’s bank | 308 |
Blank v. Commissioner of Taxation, [2015] FCAFC 154, aff'd [2016] HCA 42
In 1994, a non-resident executive was granted units which entitled him, on retirement, to receive payments calculated by reference to the...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | phantom profit participation unit amounts not income until paid by employer rather than when due | 737 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | no apportionment possible between resident and non-resident services | 286 |
Great-West Life Assurance Company v. The Queen, 2015 TCC 225
The appellant ("Great-West") provided prescription drug plans to the employees of various employers. The claims were processed by a third party...
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| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | electronic drug plan adjudication and processing was "quintessentially administrative in nature" | 279 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (f.1) | essential character of drug claim processing service was providing payment to the claimant | 306 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | services described in (r.4) did not represent the essential character of drug claim processing service | 269 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.5) | essential character of drug claim processing service was providing payment to the claimant | 186 |
Dimane Enterprises Ltd. v. The Queen, 2015 DTC 1013 [at at 64], 2014 TCC 334
Purported distributions out of a purported EPSP to children employees of the taxpayer were to a bank account controlled by the father, so that the...
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| Tax Topics - General Concepts - Sham | purported recipients of trust distributions had no control over funds | 242 |
| Tax Topics - Income Tax Act - Section 144 - Subsection 144(1) - Employee Profit Sharing Plan | purported recipients of trust distributions had no control over funds | 242 |
Transalta Corporation v. The Queen, 2012 DTC 1106 [at at 3044], 2012 TCC 86
Margeson J. accepted (at para. 99) that employees to whom the taxpayer issued shares in payment of bonuses to them gave consideration equal to the...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense | 61 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) | no bilateral agreement to pay bonuses only in shares | 229 |
McKenzie v. The Queen, 2011 DTC 1216 [at at 1274], 2011 TCC 289
In settlement of a suit by the taxpayer, who was an income beneficiary, the settlement agreement provided for the payment by the trust to her of...
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| Tax Topics - Income Tax Act - 101-110 - Section 106 - Subsection 106(3) | 402 |
Newmont Canada Corporation v. The Queen, 2011 DTC 1117 [at at 628], 2011 TCC 148, aff'd 2012 DTC 5138 [at 7292], 2012 FCA 214 supra
The taxpayer acquired a 100% undivided interest in a property (the "Quarter Claim") adjoining its "Golden Giant" mine subject to a 50% net profits...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(ii) | loan was merely incidental to mining business | 180 |
| Tax Topics - Income Tax Act - Section 80.2 | 241 |
Sochatsky v. The Queen, 2011 DTC 1065 [at at 346], 2011 TCC 41, 2012 TCC 65
The individual taxpayer was found to have received a bonus from a closely-held corporation in the year that the corporation declared the bonus...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | amount booked as loaned-back bonus was remuneration | 186 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 168 |
Merchant v. The Queen, 2010 TCC 467
The shareholder of a Canadian company (“Merchant 2000”) lent U.S. $650,000 to a wholly-owned U.S. subsidiary (“Merchant U.S.”) of Merchant...
Johnson v. The Queen, 2010 DTC 1213 [at at 3568], 2010 TCC 321 (Informal Procedure)
Frequent flyer points applied by the taxpayer to purchase air tickets to Chicago for medical treatment there constituted "an amount paid" for...
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| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(g) | 28 |
Innovative Installation Inc. v. The Queen, 2009 DTC 1388 [at at 2135], 2009 TCC 580, aff'd supra
After noting (at para. 21) that "the case law is clear that an amount may be included in income even where it is only notionally or constructively...
O'Dea v. The Queen, 2009 DTC 912, 2009 TCC 295
Promissory notes owing by the taxpayers, which were consideration for their acquisition of units of a limited partnership, provided that the...
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| Tax Topics - Income Tax Act - Section 143.2 - Subsection 143.2(7) | 136 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | reliance on professional opinions for technical matter | 129 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | 49 | |
| Tax Topics - Income Tax Act - Section 96 | 56 |
Collins & Aikman Products Co. v. The Queen, 2009 DTC 1179 [at at 958], 2009 TCC 299, aff'd 2010 DTC 5164 [at 7293], 2010 FCA 251
A Canadian corporation ("C&A") paid two dividends to its Canadian-resident parent ("Holdings"), which distributed the same amounts to its...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1.12) | 190 | |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | limited scope of PUC provisions reflected a policy choice | 289 |
| Tax Topics - Statutory Interpretation - Retroactivity/Retrospectivity | 72 |
WPH Mechanical Services Ltd. v. The Queen, 2007 DTC 263, 2006 TCC 677
t was found that bonuses declared payable by the taxpayer to its two directors were paid by it within the 180 day period referred to in s. 78(4)...
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| Tax Topics - Income Tax Act - Section 78 - Subsection 78(4) | 64 |
Aprile v. The Queen, 2005 DTC 585, 2005 TCC 216 (Informal Procedure)
Bell J. rejected the Crown's submission that the taxpayer can only make a deduction under s. 8(1)(i) for amounts paid in cash or by cheque with...
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| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(ii) | 74 |
Hill v. The Queen, 2002 DTC 1749 (TCC)
Miller T.C.J. noted that with respect to the situation where the taxpayer, which owed approximately $60 million in accrued interest, paid $60...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 213 | |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no Crown explanation of different treatment of simple interest | 241 |
MacNiven v. Westmoreland Investments Ltd., [2001] 1 All ER 865 (HL)
In order to generate an interest deduction for accrued interest owing by an insolvent company ("WIL") to its shareholder (a pension fund) pursuant...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(d) | capitalization of interest through payment and readvance respected | 130 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Term Preferred Share | 104 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 70 |
Fleishman v. R., 98 DTC 1836, [1998] 3 CTC 2096 (TCC)
'The taxpayer received two cash payments of $10,000 and $25,000 on an interest-bearing promissory note for $525,000 owing by an arm's length...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | payment applied by creditor to principal | 70 |
Gibson v. The Queen, 95 DTC 749, [1996] 1 CTC 2105 (TCC) (Informal Procedure)
The taxpayer transferred his equity in a house to his former spouse in satisfaction of arrears of alimony or maintenance owing to her of $19,946....
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Amount | 81 | |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(b) | 81 |
Phillips v. The Queen, 95 DTC 194, [1994] 2 CTC 2416 (TCC)
In finding that the redesignation of a 'bonus payable' to 'due to shareholder' did not constitute the receipt of an amount giving rise to income...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 103 |
Blais v. MNR, 92 DTC 1497 (TCC)
A taxpayer was ordered in 1984 to retain arrears of alimentary allowance that had accumulated from March 1983 onward to be applied against an...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(b) | 100 | |
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(b) | 100 |
Ed Sinclair Construction & Supplies Ltd. v. MNR, 92 DTC 1163, [1992] 1 CTC 2218 (TCC)
Bowman J. stated:
A mere bookkeeping entry in a loan account by itself does not constitute a taxable event unless there is something more, such as...
Re Charge Card Services Ltd., [1988] 3 All E.R. 702 (C.A.)
A company issued charge cards to cardholders who would obtain petrol from garages by presenting the card and signing a sales voucher completed by...
Associated Insulation Products, Ltd. v. Golder (1944), 26 TC 231, [1944] 2 All E.R. 203 (C.A.)
An American corporation passed a resolution providing "'that a distribution of seven per cent on the capital stock of this corporation, amounting...
Cross v. London Provincial Trust Ltd., [1938] 1 All E.R. 428 (C.A.)
The taxpayer, who held bonds on which the payment of interest had been suspended, exchanged his matured interest coupons on the bond for...
Gresham Life Society Co., Ltd. v. Bishop (1902), 4 TC 464 (HL)
The taxpayer, a UK life insurance company which was managed in London and had foreign branch businesses, was assessed for interest and dividends...
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| Tax Topics - Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) | no constructive receipt | 210 |
Administrative Policy
10 April 2024 External T.I. 2021-0919231E5 - Foreign tax allocation to a partner
Regarding the allocation of foreign tax by a partnership to a partner, CRA stated:
If the partnership pays the foreign tax on behalf of the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) | payment of withholding tax by a partnership “on behalf of its partners is an ACB-reducing distribution to them | 272 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.1) | payment by partnership of withholding or other taxes “on behalf of” its partners produces a s.53(2)(c)(v) reduction at payment time that can trigger negative ACB gain | 251 |
2023 Ruling 2023-0973911R3 - Loss Consolidation Ruling
CRA ruled on a triangular loss-shifting transaction between Lossco and its subsidiary, Profitco, under which Lossco used a daylight loan to make...
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| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) | triangular loss consolidation involving circling a daylight loan 4 times, a non-recourse interest-bearing note and a 1 b.p. spread for the preferred dividends | 370 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) | loan in loss-shifting transaction was limited recourse to the Numberco preferred shares, which had a yield 1 b.p. higher | 89 |
2023 Ruling 2023-0964601R3 - Loss consolidation arrangement
CRA ruled on routine transactions between two Lossco subsidiaries and one Profitco subsidiary of an immediate Canadian parent company involving...
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| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) | multiple use of daylight loan from NAL lender re loss shift from Lossco subs to Profitco sub | 294 |
24 May 2002 Internal T.I. 2002-0130667 F - REGIME PRESTATION EMPLOYES
Under a provision of an employee benefit plan which was assumed, for discussion purposes, to be grandfathered from the salary deferral arrangement...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | discussion of transitional rules re expansion of SDA rules effective February 26, 1986 | 42 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(g) | amounts received by retiring employee under EBP even if elected not to receive | 153 |
7 November 2022 External T.I. 2022-0926091E5 - Transfer of UK DB pension benefits to a UK SIPP
After a UK resident (under age 55) became resident in Canada, the commuted value of the individual’s member benefits under a UK defined-benefit...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | constructive receipt where commuted value of entitlements under a UK defined-benefit plan transferred directly to a UK self-invested personal pension plan | 346 |
| Tax Topics - Income Tax Act - Section 94 - Subsection 94(1) - Contribution | direct transfer from one group UK pension plan to an individual UK pension plan constituted a contribution by the individual to the latter | 194 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | s. 56(2) application where direct transfer between UK pension plans | 175 |
23 January 2023 External T.I. 2020-0865161E5 F - SSUC/CEWS – Sous-alinéa 125.7(4)e)(i) et personne
When is an amount regarded as received by an eligible entity which has made an election under s. 125.7(4)(e)(i) to use the cash method in...
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| Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(4) - Paragraph 125.7(4)(e) | electing taxpayer can receive amounts through third party where receipt on its behalf is established by agreement or statute | 150 |
2021 Ruling 2021-0911211R3 - Foreign Takeover
CRA ruled on transactions which included the borrowing of money by a newly-formed non-resident corporation (Merger Sub1) from a Canadian affiliate...
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| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | shares issued to a Canadian parent in consideration for it issuing shares on a Delaware merger had a cost equal to such shares’ FMV/ shares transferred on absorptive merger at FMV | 903 |
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(1) - Paragraph 84(1)(b) | permitted increase in PUC of shares of subsidiary to which a contribution of shares was made, equal to those shares’ FMV | 111 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (k) - Subparagraph (k)(ii) | deposit of shares to voting trust arrangement was not a disposition | 40 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) | full cost to sub of shares contributed to it | 289 |
15 March 2019 External T.I. 2018-0766021E5 - Obligation to prepare T4A slips
A Canadian university agreed with a (perhaps, foreign) Ministry to apply funding received by it to pay the tuition of and a monthly stipend to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 200 - Subsection 200(2) | where X makes a payment at the direction of Y, X need not issue a T4A to the payment recipient | 151 |
2021 Ruling 2021-0876671R3 - Transfer between US pension plans
S. 56(1)(a) generally requires the recognition of an amount received as or in satisfaction of a pension benefit. A portion of a multi-employer US...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | the transfer of a portion of the assets and Canadian beneficiaries from an old to a new US pension plan did not result in receipt under s. 56(1)(a) | 466 |
| Tax Topics - Treaties - Income Tax Conventions - Article 18 | the transfer of a portion of the assets and beneficiaries from an old to a new US pension plan did not result in taxable income under the IRC | 183 |
| Tax Topics - Income Tax Act - Section 207.6 - Subsection 207.6(5.1) | Reg. 6804 exclusion applied | 178 |
29 March 2021 Internal T.I. 2020-0865791I7 - CEWS - eligible remuneration
The CEWS (wage subsidy) is generated based on the amounts of “eligible remuneration paid to the eligible employee.” CRA stated, in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(2) | remuneration not paid by journal entry | 164 |
| Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Remuneration - Paragraph (c) | eligible remuneration that is returned to the eligible employer as a capital contribution or shareholder loan adjustment is excluded for CEWS purposes | 187 |
29 September 2020 External T.I. 2018-0757501E5 F - Crédit pour intérêts sur les prêts étudiants
A Quebec post-secondary student loan program provided for an initial 12-month “full exemption period” (in which the Quebec government paid the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.62 | capitalization of interest on a novation would constitute its payment – but novated loan would be a new non-student loan | 221 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(d) | capitalization of unpaid interest by way of novation constituted its payment | 66 |
13 August 2020 External T.I. 2019-0802891E5 F - Unclaimed RRSP Benefits
The estate of the deceased annuitant of an RRSP was fully settled without the executor (his surviving wife and the sole beneficiary) being aware...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(1) - Benefit - Paragraph (a) | benefit includible in deceased annuitant’s return was not subject to "benefit"-(a) exclusion because it was not reported | 312 |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(8) | s. 146(8) benefit paid to the taxpayer’s administrator was not includible in her income until the year she was identified and received the amount | 377 |
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(4) - Paragraph 146(4)(c) | tax imposed on RRSP under s. 146(4)(c) where RRSP issuer unaware of annuitant’s death | 187 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | fees incurred as a consequence of receiving unclaimed property (which was taxable under s. 146(8)) were non-deductible | 205 |
| Tax Topics - Income Tax Act - Section 9 - Timing | receipt of income by an administrator was not income of the beneficial owner until the year she was identified | 350 |
14 May 2019 CLHIA Roundtable Q. 3, 2019-0799111C6 - 2019 CLHIA Q3 - 3rd party RRSP contributions
CRA indicated that it is acceptable for an RRSP contribution to be received from a third party (i.e., drawn on a bank account other than the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(5) | a 3rd party can make an RRSP contribution | 162 |
2 April 2019 Internal T.I. 2016-0649821I7 F - Unclaimed superannuation or pension benefits
Although CRA usually applies its constructive receipt concepts in the context of employment income recognition, it has applied that concept to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | subsequent year’s payment of benefit to a previously-unidentified beneficiary is only income in that year as an “in lieu of” pension amount | 628 |
5 October 2018 APFF Financial Strategies and Instruments Roundtable Q. 10, 2018-0761551C6 F - Attribution rules and promissory note
Where a loan is made to a spouse at the prescribed interest rate, s. 74.5(2) requires that each year’s interest be “paid” by January 30 of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 74.5 - Subsection 74.5(2) - Paragraph 74.5(2)(b) | accrued interest cannot be “paid” for s. 74.7 purposes by issuing a promissory note | 242 |
S3-F6-C1 - Interest Deductibility
Capitalization of interest not treated as payment thereof
1.83 In circumstances where accrued interest is added to the outstanding principal...
17 June 2014 External T.I. 2013-0506731E5 - Immigration
An individual shareholder immigrates to Canada, thereby becoming a Canadian resident. NRCo issues a $1,000 promissory note to her in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) | dividend receivable acquired on immigration | 141 |
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(2) | dividend not recognized until paid | 180 |
24 November 2013 CTF Roundtable, 2013-0508151C6 - Upstream Loans
A loan or indebtedness will be considered to have been repaid by a debtor by way of set-off against a receivable of the debtor "if the set-off...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(8) - Paragraph 90(8)(a) | repayment by set-off | 75 |
30 January 2014 External T.I. 2013-0515761E5 F - Dividend received
A dividend of a taxable Canadian corporation owned by an individual is not paid in money but is recorded in its books as an increase in a loan...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) | book entries are ancillary and do not establish receipt | 175 |
11 December 2013 External T.I. 2013-0474161E5 - T-slips and dividend and interest
Respecting a question as to when dividends are paid and received for T5 purposes, CRA stated:
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) | constructive receipt | 98 |
7 October 2013 Internal T.I. 2013-0504081I7 F - Interaction between 55(2) and 40(1)(a)(iii)
Vendor sold blocks of shares in the capital of a corporation (the “Purchaser”) to the Purchaser, with the purchase price being payable over a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) | reserve available for s. 55(2) gain on purchase for cancellation of shares where redemption proceeds payable on an earnout basis | 268 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | s. 40(1)(a)(iii) reserve available where redemption proceeds payable on earnout basis | 173 |
6 November 2012 External T.I. 2012-0452531E5 - Satisfactory Evidence of Payment
In response to a question as to whether "a demand note payable, which is accepted as absolute payment of salary owing to an employee, constitutes...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 78 - Subsection 78(4) | 169 |
13 June 2012 Internal T.I. 2012-0435351I7 F - SEPE - chèques en circulation
Are the cash assets of Opco reduced by the amount of issued and outstanding cheques that have not yet been cashed? CRA responded:
Under the civil...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation | outstanding and uncashed cheques did not reduce cash | 145 |
4 July 2011 External T.I. 2011-0401991E5 F - CDA and life insurance proceeds
CRA stated:
In factual situations similar to the Innovative Installation case, the CRA will apply the position adopted by the Court in that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) - Subparagraph (d)(ii) | CRA will follow Innovative Installation | 178 |
13 June 2012 External T.I. 2012-0435351E5 F
Cheques issued by Opco but not yet cashed would not reduce its cash on hand given that under the applicable law (the Quebec Civil Code), the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation | cheques not yet cashed | 48 |
30 March 2011 External T.I. 2010-0390591E5 F - Cotisation spéciale
All the condo owners in a condo complex that was used only in a high-end commercial accommodation business leased their units to a manager for a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Timing | amounts assessed against the taxpayer by co-owners not deductible until expended on or in the business | 219 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(16) - Paragraph 248(16)(a) - Subparagraph 248(16)(a)(i) | addition for GST and subtraction for ITC | 141 |
7 December 2010 External T.I. 2010-0363431E5 F - Date limite cotisation REER
In commenting on whether an RRSP premium is considered to have been paid within the first 60 days of a year, CRA stated:
In general, we consider a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(5) | 60-day contribution deadline is met based on receipt of cheque by issuer, not its deposit | 122 |
21 July 2009 Internal T.I. 2009-0322591I7 F - Déduction des intérêts
The taxpayer purchased assets from the vendor (apparently, a non-resident) in consideration for shares of the taxpayer and interest-bearing debt,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | replacement of note and capitalized interest by new note with increased amount did not constitute payment by novation of the old debt | 193 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b) | issuance of replacement promissory note for amount of previous principal plus capitalized interest was not a crediting of such interest | 151 |
25 March 2009 External T.I. 2008-0300401E5 F - Fiducie en faveur de soi-même - prêt sans intérêt
CRA indicated that an individual would be considered to be personally paying taxes of a trust that had made a s. 104(13.1) where he received...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | Howson applied to find that non-interest bearing loan by individual to his alter ego trust not subject to s. 75(2)/no contribution if individual pays trust taxes following a s. 104(13.1) election | 181 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13.1) | s. 104(13.1) election generally available where no s. 75(2) application, which is not engaged by the individual’s payment of trust-level taxes | 357 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(4.1) | s. 56(4.1) inapplicable to NIB loan made by individual to his alter ego trust | 139 |
21 April 2008 Internal T.I. 2007-0251761I7 F - Billet à payer
Debt owing to the taxpayer following an asset sale provided that interest may be added to the principal of the debt, which is what occurred. In...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(d) | addition of unpaid interest to principal did not establish a loan of that interest or a novation of the debt – so that interest on such capitalized interest non-deductible until paid | 243 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | addition of unpaid interest to principal was not a payment or crediting of the interest so as to engage Pt. XIII tax | 109 |
14 June 2007 Internal T.I. 2007-0229311I7 F - Capital Dividend Account
After noting that payment of two back-to-back capital dividends (from “Subco” to “Parentco,” and form it to its individual shareholder)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (b) | recording of dividend payable and dividend receivable between sub and parent was insufficient to constitute the payment of a capital dividend, so that there was no CDA addition | 132 |
| Tax Topics - Income Tax Act - Section 184 - Subsection 184(3) | invalid payment of capital dividend (because no payment) was subject to Pt. III tax (given valid s. 83(2) election) for which no s. 184(3) election could be made as no payment | 135 |
| Tax Topics - General Concepts - Effective Date | a declared dividend cannot be revoked | 158 |
4 October 2002 Internal T.I. 2001-010564A F - PENSION ALIMENTAIRE-ARRERAGES
After finding that a lump-sum payment to cover support-payment arrears could be considered as an amount payable on a periodic basis, even though...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 60 - Paragraph 60(b) | lump sum payment in settlement of periodic support payments in arrears is an amount payable on a periodic basis | 89 |
25 June 2002 Internal T.I. 2002-0130177 F - DEBENTURE CONVERTIBLE
CCRA reviewed the line of cases culminating in Teleglobe, and concluded that the amount paid by the issuer on the conversion of its convertible...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) | amount paid by corporation on conversion of convertible debentures was the stated capital of the issued shares, being the debentures’ face amount, so that no s. 20(1)(f) deduction | 88 |
| Tax Topics - Income Tax Act - Section 143.3 - Subsection 143.3(3) - Paragraph 143.3(3)(a) | Teleglobe applied to pre-s. 143.3(3)(a)(ii) transaction | 83 |
18 September 2001 External T.I. 2001-0095265 F - TAXE SUR LE CAPITAL
In indicating that outstanding cheques of a corporation do not represent loans or advances, CCRA stated:
The delivery of a cheque (other than a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(c) | outstanding cheques are not loans or advances, but they reduce the debts of which they are repayment only to the extent reflected in the balance sheet | 119 |
1 August 1996 External T.I. 9604555 - AMOUNT PAYABLE SUBSECTION 104(24)
Regarding whether a mutual fund trust beneficiary had a legal entitlement to the income of the trust where a promissory note for the income amount...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) | promissory note is not payment where it only evidences a future payment obligation | 167 |
9 May 2006 Internal T.I. 2006-0176371I7 F - Bourses d'études ou d'entretien
CRA found that bursaries paid to Quebec students under the Program québécois de prêts et bourses (the Quebec loans and bursaries program) by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) | payments (made by application against student loans) were “given to students who need financial assistance to continue their education” and, thus, were bursaries | 81 |
17 February 2004 External T.I. 2003-0033915 - Cash pooling - shareholder benefit
In indicating that a cash pooling arrangement entered into by a Canadian subsidiary with its non-resident parent corporation could result in an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(2.6) | cash pooling with NR parent | 77 |
25 September 2003 Internal T.I. 2003-0032837 F - Market Maker: Reserve Account for Losses
A firm (ABC), that employed market makers, maintained a separate account for each employee into which a portion of the commissions earned by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | payment of deferred commission amounts held as contingency loss reserve from old employer to new employer was a payment of “remuneration” subject to withholding | 280 |
29 April 2003 External T.I. 2002-0177065 F - CONFISCATION DE LA SOLDE
CCRA indicated that salary that was forfeited by RCMP officer for misconduct nonetheless was to be treated as includible in the officer’s income...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | salary that is forfeited by RCMP officer for misconduct nonetheless is includible as salary which was constructively received | 137 |
IT-243R4, para 5
"A corporation is not considered to have paid a dividend when it merely credits a shareholder's account, unless the shareholder is able to...
2 April 1998 Roundtable, E9722066 - PROMISSORY NOTE -WHETHER PAYMENT OF DEBT?
In finding that a cash-basis farmer realized income on the transfer of inventory for a promissory note, CRA stated:
Since the promissory note was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 28 - Subsection 28(1) - Paragraph 28(1)(a) | promissory note accepted as absolute payment for the transfer of inventory given that no remedy provided for non-payment | 145 |
5 January 1996 CTF Roundtable Q. 31, 9523976 - GROSS-UP PAYMENTS
A gross-up on a debt obligation owing to a Canadian lender will be included in the Canadian lender's income under s. 9 or s. 12(1)(c) even "where...
30 June 1995 Internal T.I. 9503907 - TAX STATUS OF CHEQUE RETURNED BY CASH METHOD FARMER?
A payment by cheque is equivalent to a payment in cash as long as no special circumstances lead to another conclusion, and the cheque is not...
19 June 1995 Memorandum 950842 (C.T.O. "Patronage Dividends Paid by Non Co-ops")
Payment of a patronage dividend may be effected by the issuance of shares or debt instruments, where such an arrangement is authorized by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage | 41 |
7 May 1995 Internal T.I. 9510220 - PART I.3, O/S CHEQUES & OVERDRAFTS
Bank overdrafts are considered to have arisen to the extent that they have been utilized or drawn upon. For these purposes, RC, in common law...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 181.2 - Subsection 181.2(3) | 109 |
6 July 1994 Administrative Letter 9323826 F - Bonds Issued in Lieu of Interest
Bonds issued to a Canadian bank in settlement of arrears interest on a non-performing loan of a Brazilian debtor would not be considered to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | 95 |
1993 A.P.F.F. Round Table, Q.15
There is no repayment for the purposes of s. 20(1)(hh) when shares are converted to a debt security and the parties are in essentially the same...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(hh) | 65 |
26 November 1992 T.I. 923506 (September 1993 Access Letter, p. 411, ¶C20-1161)
For farmers on the cash method, a post-dated cheque that is received on a date that a debt owing to the taxpayer is not yet payable will be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 28 - Subsection 28(1) | 59 |
31 August 1992 T.I. (Tax Window, No. 24, p. 8, ¶2184)
A direct payment by a non-resident to Revenue Canada of a tax liability of a related Canadian corporation would entail the receipt of an amount by...
7 August 1992 T.I. 921752 (May 1993 Access Letter, p. 198, ¶C76-066)
Because the function of a journal entry is to record a transaction rather than to make it legally effective, the reclassification of a...
28 July 1992 Memorandum 921859 (April 1993 Access Letter, p. 151, ¶C180-136)
A taxpayer is not considered to have "paid" interest on a loan owing by him to a charitable foundation by virtue only of journal entries being...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 189 - Subsection 189(1) | 37 | |
| Tax Topics - Income Tax Regulations - Regulation 2900 - Subsection 2900(2) | 68 |
15 June 1992 T.I. 921368 (December 1992 Access Letter, p. 18, ¶C56-208)
No payment will be considered to occur pursuant to an agreement between the parties to the effect that interest on a promissory note will be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 74.5 - Subsection 74.5(1) | 38 |
3 July 1991 Memorandum (Tax Window, No. 5, p. 22, ¶1335)
A journal entry recording a transfer of an amount from a salary payable account to a loan from shareholder account does not by itself constitute...
5 July 1990 TI AC59710
Where a promissory note is given in consideration for services, the acceptance of the note would be considered to be an amount received under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) | 76 |
85 C.R. - Q.29
Constructive receipt by an employee benefit plan beneficiary occurs when an amount is made available to him without being subject to any...
84 C.R. - Q.13
Under an unfunded deferred compensation plan, constructive receipt is considered to occur in situations where an amount is credited to an...
IT-436R "Reserves - Where Promissory Notes are Included in Disposal Proceeds"
Where a promissory note has been accepted as absolute payment for the disposition of a property, no amount is due in respect of the disposition,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) | 0 |
IT-168R2, para. 3-4
deferred remuneration should be included in income for the year in which the employee is entitled to receive it or actually receives it.
IT-305R3 "Establishment of Testamentary Spouse Trust"
In interpreting the requirement that the spouse must be entitled to receive all the income of a spouse trust that arises before the spouse's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) | 0 |
IT-196R2 "Payments by Employer to Employee"
A taxable payment is included in computing the employee's income on the earliest taxation year in which he receives it, absolute enjoyment or use...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) | 0 |
Articles
Peter Lee, Paul Stepak, "PE Investments in Canadian Companies", draft 2017 CTF Annual Conference paper
Efficacy of payments by direction (p. 24)
[W]ires are often made directly from the source of the funds (e.g. the PE [private equity] fund capital...
Kevin Bianchini, Reuben Abitbol, "Taxation of Stock Appreciation Rights", Taxation of Executive Compensation and Retirement (Federated Press), Vol. 24 No. 8, 2015, p.1655
Safe harbour until SAR vesting (p. 1656)
[T]he CRA has taken the position that until the employee has a right to exercise and cash in the SARs,...
| Other locations for this summary | |
|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) |
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | 389 |
E.G. McKendrick, Chitty on Contracts, Vol. 1, Thirtieth Edition (2008).
Discharge by paying creditor's debt (§21-042, p. 1426)
If the creditor requests the debtor to pay the debt to a third party, such a payment is...
C.R.B. Dunlop, Creditor-Debtor Law in Canada, Second Edition (1994).
Discharge by paying creditor's debt (pp. 20-1)
As a general rule, a debtor can discharge a debt only by payment to the creditor personally, ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract | 611 |
Arnold, "Timing and Income Taxation: The Principles of Income Measurement for Tax Purposes", Canadian Tax Paper, No. 71, Canadian Tax Foundation, July 1983
See chapter 3 entitled "Cash Basis Accounting: The Concepts of Receipt and Payment".
Wilson, "Repayment of Shareholder Loans", 1995 Canadian Tax Journal, Vol. 43, No. 3, p. 746.
Includes (at pp. 751-754) a discussion of the Clayton rule.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(j) | 0 |