Cases
Hidden Valley Golf Resort Assn. v. Canada, [2002] GSTC 42 (FCA)
Before going on to find that the leasing by the Appellant of cottage properties was a single supply of exempt residential accommodation, Sharlow...
Mollinaro v. The Queen, 2000 DTC 6114 (FCA)
Pursuant to an agreement in which the taxpayer's holding company agreed to sell all the shares of a pizza manufacturing company ("Pizza Crust") to...
Canada v. Pinot Holdings Ltd., 99 DTC 5772 (FCA)
Noël J.A. indicated that the following statement from IRC v. Duke of Westminister, [1935] AC 1 at 30-31 remained "eminently good law":
"And what...
Shell Canada Ltd. v. Canada, 99 DTC 5669, [1999] 3 S.C.R. 622, [1999] 4 CTC 313
In the course of rejecting a submission that a borrowing in New Zealand dollars by the taxpayer at 15.40% interest should be treated (in light of...
Continental Bank Leasing Corp. v. Canada, 98 DTC 6505, [1998] 2 S.C.R. 298, [1998] 4 CTC 119
In finding that the taxpayer and other corporations had been successful in creating a partnership through entering into an agreement that was...
Pardee Equipment Ltd. v. R., 97 DTC 5279, [1997] 3 C.T.C. 451 (FCTD)
Although the form of the document governing the delivery of equipment to the taxpayer was that of consignment, Reed J. found that the proper legal...
The Queen v. Friedberg, 92 DTC 6031, [1992] 1 CTC 1 (FCA)
Before finding against the taxpayer, Linden, J. A. stated (p. 6032):
"In tax law, form matters. A mere subjective intention, here as elsewhere in...
Gesser Estate v. The Queen, 89 DTC 5274, [1989] 2 CTC 31 (FCTD), rev'd 92 DTC 6273 (FCA)
Pinard J. applied the principle (stated in Simon's Income Tax) "that the taxing Acts are to be applied in accordance with the legal rights of the...
Shaw v. The Queen, 89 DTC 5194, [1989] 1 CTC 386 (FCTD), aff'd 93 DTC 5213 (FCA)
In order to determine the substance of a non-arm's length transfer of a business from a partnership to a corporation, regard was had to the...
Choquette v. The Queen, 74 DTC 6563, [1974] CTC 742 (FCTD)
In finding that the description of a payment made to the taxpayer in an agreement as a capital sum was not conclusive, Décary J. quoted the...
Automatic Toll Systems (Canada) Ltd. v. MNR, 74 DTC 6060, [1974] CTC 30 (FCTD)
When the taxpayer contacted an agent to determine what was required in order to terminate its obligation to pay the agent a 10% commission on...
The Queen v. F.H. Jones Tobacco Sales Co. Ltd., 73 DTC 5577, [1973] CTC 784 (FCTD)
In determining whether an obligation was that of a corporation or its shareholder, Noel, J. stated: "The Court must consider the situation from a...
MNR v. Import Motors Ltd., 73 DTC 5530, [1973] CTC 719 (FCTD)
The court accepted the taxpayer's submission "that it is the real character of the transaction and not the name given to it or the method by which...
Huston v. MNR, 61 DTC 1233, [1961] CTC 414 (Ex.Ct.)
In finding that no portion of payments received from the War Claims Fund was interest income, Thurlow, J. stated that the payments 'take their...
See Also
ING Intermediate Holdings Ltd v HMRC, [2017] EWCA Civ 2111
Although accepting (per BLP) that a mere borrowing by a company is not a supply by it, Arden LJ accepted the finding below that the services...
Crooks v. The Queen, 2016 TCC 52 (Informal Procedure)
An agreement for the purchase of a new condo by the appellant was amended shortly before closing at the insistence of the mortgage lender to add...
Commissioners for HM Revenue and Customs v. Secret Hotels2 Ltd., [2014] UKSC 16
Before going on to find that an agreement under which the appellant was stipulated to act as agent in fact created an agency relationship, Lord...
Revenue and Customs Commissioners v. First Nationwide, [2012] BTC 99, [2012] EWCA Civ 278
The fact that the payment of a dividend out of the share premium account of a Caymans company reduced the capital that would have been...
Chabaud c. La Reine, 2012 DTC 1076 [at at 2856], 2011 TCC 438 (Informal Procedure)
In finding that "bursary" amounts a postdoctoral fellow received from his university were in fact remuneration from employment, Archambault J....
Fiducie Famille Gauthier v. The Queen, 2011 DTC 1343 [at at 1917], 2011 TCC 318, aff'd 2012 FCA 76
The taxpayer, a family trust, made a non-arm's-length sale of shares to a numbered corporation ("404") for a promissory note of approximately $2.6...
Stefanson Farms Ltd v. The Queen, 2009 DTC 177, 2008 TCC 682
An agreement dated October 16, 1998, with an effective date of January 1, 1998, between the taxpayer and shareholder which provided for the...
Ceco Operations Ltd. v. The Queen, 2006 DTC 3006, 2006 TCC 256
In finding that a transfer by the taxpayer of business assets to a partnership in consideration for partnership units and non-units consideration...
Queenswood Land Associates Ltd. v. R., 97 DTC 1048, [1997] 2 CTC 2688 (TCC), rev'd 2000 DTC 6065, Docket: A-182-97 (FCA)
An amount paid by the taxpayer that had been labelled a "fee" was found to represent a reduction of indebtedness owing by it to the recipient of...
Entré Computer Centers Inc. v. The Queen, 97 DTC 846, [1997] 1 CTC 2291 (TCC)
Payments made by Canadian franchisees to the taxpayer that were calculated as a mark-up on the value of products sold by the taxpayer to them were...
Collins v. The Queen, 96 DTC 1034 (TCC)
Before rejecting a submission that the taxpayer had held half of his shares of a private company on a resulting trust for his wife, Bowman TCJ....
Stafford v. The Queen, 93 DTC 438, [1993] 1 CTC 2284 (TCC)
Before rejecting a submission that the taxpayer should be regarded as having received options on behalf of another person notwithstanding the form...
Viceroy Rubber and Plastics Ltd. v. MNR, 93 DTC 347, [1993] 1 CTC 2343 (TCC)
Before going on to find that an agreement, which was in the form of a lease, in substance was a sale agreement, Brulé J. stated (p.354) that:
"It...
McArdle Estate [No. 2] v. MNR, 62 DTC 402 (TAB)
After finding that a transaction was in substance a re-allotment of shares rather than their redemption notwithstanding that a resolution referred...
No. 115 v. MNR, 53 DTC 338 (ITAB)
Payments received by the taxpayer which were stipulated to be consideration for his agreement not to engage in the lobster business within two...
Foster v. M.N.R, 51 DTC 232 (ITAB)
The legal effect of a lease and option-purchase agreement entered into the taxpayer was found to be a sale agreement, with the result that "rent"...
Administrative Policy
17 February 2021 External T.I. 2018-0768051E5 F - Contrat de crédit-bail
Regarding a lease of a truck tractor with a term of 48 months and a bargain purchase option at maturity, CRA indicated that the monthly rental...
S4-F14-C1 - Artists and Writers
Characterization of amount turns on its true nature, not its label
1.4 The tax treatment of a particular amount depends not upon the label affixed...
7 February 2014 External T.I. 2014-0516921E5 F - Crédit et frais résiduels
Before going on to analyse automobile leases - under which the lessee bore all risk including being responsible for the rents even if the...
18 July 2011 External T.I. 2010-0370561E5 F - Location avec option d'achat
In the absence of sham, is a lease a lease and a sale a sale? CRA responded:
[W]hether a contract is a lease agreement or a sales contract must...
28 October 2010 Internal T.I. 2010-0376041I7 F - Contrat d'acquisition ou de location
Motor vehicle lease agreements between a company and a leasing company provide that the company will automatically acquire ownership of the leased...
Income Tax Technical News, No. 21, June 14, 2001
"Recharacterization is permissible only if the label attached by the taxpayer to the particular transaction does not properly reflect its actual...
20 July 2001 External T.I. 2001-0087205 F - BAIL TRAITEMENT DU PRENEUR
In providing background on the announcement in Income Tax Technical News No. 5 of the withdrawal of IT-233, CCRA stated:
[T]he purpose of the...
20 January 1999 External T.I. 9832305 - LEASING FEES AS BUSINESS EXPENSES
"Generally, we will rely on the assumption that the form of a particular lease agreement reflects the true relationship between the parties so...
89 C.R. - Q.8
"A transaction that takes the form of a lease will ordinarily be treated as a lease for the purposes of the Act, on the presumption that the...
88 C.R. - "Finance and Leasing" - "Leasing"
RC will normally rely on the assumption that the form of an agreement reflects the true relationship of the parties involved.
88 C.R. - F.Q.23
There is no conflict with GAAR in characterizing a transaction based on the legal rights and obligations of the parties.