(2.1)-(11)

Subsection 12(2.1) - Receipt of inducement, reimbursement, etc.

Administrative Policy

8 September 2023 Internal T.I. 2023-0987091I7 - Trailing Commissions and Dealer Rebates

An order execution only service dealer (“OEO Dealer”), i.e., one that does not make a suitability determination before arranging for a client...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) trailer fee rebates paid by dealer to MFT unitholder clients were s. 12(1)(x) inclusions to the MFT 256

12 October 2012 External T.I. 2012-0448351E5 - treatment of trailer fee rebates

A mutual fund trust funds commissions to the dealer through whom its units were purchased and also funds an annual trailer fee. However, the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) MFT fee rebate 195
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(7.1) MFT fee rebate paid directly to large investor as trust distribution 263

4 July 2007 Internal T.I. 2007-0238391I7 F - Crédit pour stage en milieu de travail

The Quebec tax credit for an on-the-job training period was includible in income under s. 12(1)(x) to the extent that it did not reduce the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) Quebec job tax credit included under s. 12(1)(x) if not a wage expense reduction 58

1 February 1994 External T.I. 9332265 F - Inducement

A fund manager rebates a portion of management fees charged to a mutual fund trust directly to investors in the trust who have substantial amounts...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) investor rebate inclusion under s. 12(2.1) 42

Subsection 12(2.2) - Deemed outlay or expense

Administrative Policy

7 October 2020 APFF Roundtable Q. 18, 2020-0862931C6 F - 12(1)(x) and CEBA

CRA provided more detailed comments on the consequences of a corporation receiving a $40,000 loan under the Canada Emergency Business Account...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(hh) the parties can agree to allocate late CEBA loan repayments between the forgivable and non-forgivable loan components 374
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) bank lending under CEBA loan program is described in s. 12(1)(x)(i) and forgivable loan included on receipt 88

10 November 2020 External T.I. 2020-0861461E5 - TI – Tax Treatment of Loan Forgiveness under CEBA

The Canada Emergency Business Account (“CEBA”) program provides interest-free loans of up to $40,000 to small businesses and not-for-profit...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) the forgivable loan portion of a CEBA loan is a s. 12(1)(x)(iv) receipt 373

20 May 2014 External T.I. 2013-0516121E5 F - Debt forgiveness

A compromise by Aco under Division I of Part III of the Bankruptcy and Insolvency Act resulted in reassessments owing by Aco for unremitted GST...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) BIA settlement of GST interest and penalties included under s. 12(1)(x)(iv) 157
Tax Topics - Income Tax Act - Section 248 - Subsection 248(26) unremitted GST and QST were not obligation "issued" by debtor 102
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation BIA settlement of unremitted GST interest 127
Tax Topics - Income Tax Act - Section 9 - Forgiveness of Debt BIA settlement of unremitted GST on sales was on capital account 82

7 October 2011 Roundtable, 2011-0412021C6 F - Financing Expenses

As part of the restructuring of the financing of its corporate group, Corporation A borrowed from a financial institution in order to make a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) - Subparagraph 20(1)(e)(ii.2) CRA will evaluate whether the transactions are "restructuring" 146

19 January 2005 External T.I. 2004-0091601E5 F - Incitatif versé - taux d'intérêt réduit

In order to finance $400,000 of the $500,000 purchase price of a rental property, the taxpayer receives a 5-year mortgage loan from a financial...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 53 - Subsection 53(2.1) ss. 13(7.4) and 53(2.1) elections unavailable re acquired rental property for cashback received from mortgage lender to offset high interest rate 198
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(v) s. 12(1)(x) applies (subject to s. 12(2.2) election) to lump-sum mortgage interest rebate except to the extent the amount was reported as s. 9 income 116

14 January 2004 Internal T.I. 2004-0054711I7 F - Choix en vertu du paragraphe 12(2.2)

A taxpayer received assistance in the 2000 taxation year in respect of an expenditure made in the 2001 taxation year, as to which it made the...

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90 C.P.T.J. - Q.14

An election pursuant to s. 12(2.2) will eliminate any income inclusion assuming that the election is filed on time and the reimbursement relates...

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IT-273R2, "Government Assistance - General Comments," para. 15

the election should be made by means of a signed letter accompanying the applicable tax return.

Subsection 12(3) - Interest income

See Also

Tael One Partners Limited v. Morgan Stanley & Co International PLC, [2015] UKSC 12

Lord Reed stated (at para. 41):

The word "accrue" is generally used to describe the coming into being of a right or an obligation (as, for...

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Words and Phrases
accrue

Elm Ridge Country Club Inc. v. The Queen, 95 DTC 715 (TCC)

The interest accrual rule in s. 12(3) did not apply to interest income deemed to be earned by a non-profit club pursuant to s. 149(5).

Administrative Policy

11 June 2004 External T.I. 2004-0076291E5 F - Renonciation aux intérêts à recevoir

During the second year (2000-B) of a loan accruing interest at 5% per annum (which had been treated by the parties as requiring the interest to be...

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92 C.R. - Q.4

The inclusion of accrued interest on a convertible debenture is required even, if as a result of a subsequent conversion of the debenture into...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) no ACB increase for foregone interest 34

17 August 1992, T.I. 921353 (April 1993 Access Letter, p. 135, ¶C20-1141)

In order for the forgiveness of accrued interest owing by a non-arm's length person to be effective, there must be an amendment to the original...

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1 August 1990 External T.I. 5-900756

"The term 'debt obligation', as used in subsection 12(3), is not defined in the Act and accordingly must be interpreted in its ordinary meaning....

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86 C.R. - Q.57

In the year of foreclosure or repossession, the creditor is required to include interest income that accrued up to the due date immediately prior...

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Articles

Subsection 12(4) - Interest from investment contract

See Also

Peracha v. Miley, [1989] BTC 85 (Ch.D.), aff'd [1990] BTC 406 (C.A.)

An amount deposited by the taxpayer with a London bank was the security for a loan to the taxpayer's company which had been expropriated by the...

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Administrative Policy

20 November 2012 External T.I. 2012-0449671E5 - Accrued Interest Income Reported on T5 Slips

A corporation issued debentures on which, due to cash flow issues, interest was paid for the first half of the year, but not paid for the second...

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30 November 1996 Ruling 9719753 - CONTINGENT RATE OF RETURN

Notes of the issuer had a term of five years, were not redeemable prior to the maturity date, did not bear any stipulated fixed interest, but at...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(d) 90% cap does not engage accrual 66

21 March 1994 External T.I. 9328405 - DISCOUNT ON ISSUE

Where an investor purchases at the time of issue a 10-year bond from a securities dealer having a coupon of 1% at the time that the market rate of...

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Halifax Round Table, February 1994, Q. 6

Where an individual investor purchases a 10-year bond with a stipulated interest rate of 1% from an arm's length securities dealer at a time the...

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28 February 1992 T.I. (Tax Window, No. 17, p. 20, ¶1771)

Ss.12(4) and 78(1)(a) do not result in the same interest being taxed twice.

84 C.R. - Q.12

S.12(4) will apply where an employee's interest in a deferred compensation arrangement constitutes a debt obligation and there is a formula for...

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Articles

Subsection 12(9.1)

Administrative Policy

6 October 2006 Roundtable, 2006-0197031C6 F - Obligation achetée à prime

An individual acquired a bond, bearing interest at 7% and with a face value of $100, for investment purposes in the secondary market for $124. ...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base premium paid on secondary purchase of bond is part of bond ACB 182
Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(1) - Paragraph 7000(1)(b) bond that was purchased at a premium is not a Reg. 7000(1)(b) obligation 57

Articles

Sabrina Wong, Sania Ilahi, "Tax Implications of Asset Securitizations", 2015 CTF Annual Conference Report

Carve-out re interest coupons received (or reversal of PDO overaccrual) in a mortgage securitization structure (p. 12:17)

The application of...

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Subsection 12(10.2) - NISA receipts

Administrative Policy

26 June 2014 External T.I. 2014-0523871E5 F - Revenu d'entreprise agricole

Is AgriInvest and AgriStability income support, received by a farmer, farming income or other income to that individual? CRA stated:

The...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Farming legume germination production as farming 38
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(p) withdrawals from the AgriStability account are taxable as farm business income 175

27 May 2010 External T.I. 2010-0359491E5 F - Programme Agri-investissement

Is the taxpayer’s income respecting a withdrawal from the taxpayer’s second AgriInvest Fund income from a business or property? CRA...

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Articles

Holland, "NISA in a Nutshell", Canadian Current Tax, July 1992, p. A17.

Subsection 12(11) - Definitions

Anniversary Day

Administrative Policy

31 May 2005 External T.I. 2005-0122641E5 F - Intérêts courus

A $1,000 escalating-rate investment certificate (that is an "investment contract") with a three-year term was issued to an individual on January 1...

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Other locations for this summary
Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(c.1) Reg. 7000(2)(c.1) applied on December 31 of each year to investment contract issued on January 1

29 August 1991 T.I. (Tax Window, No. 8, p. 2, ¶1425)

Discussion of the determination of "anniversary day" in various contexts respecting shareholder loans or advances.

Investment Contract

Cases

Barejo Holdings ULC v. Canada, 2016 FCA 304

The Federal Court of Appeal dismissed the Barejo appeal – but on the grounds that the Rule 58 question posed to the Tax Court was whether the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) determining whether the notes in Barejo were debt for purposes of the ITA rather than s. 94.1 would be “an improper use of judicial resources” 274

See Also

CAE Inc. v. The Queen, 2021 CCI 57, aff'd 2022 CAF 178

CAE, which was engaged in manufacturing flight simulator systems, incurred over $700 million in R&D expenditures on further developing such...

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Words and Phrases
loan
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Government Assistance an unconditionally repayable loan with a 2.5% yield was government assistance 312
Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(d) loan with non-commercial terms was government assistance when advanced 283

Barejo Holdings ULC v. Canada, 2020 FCA 47

An offshore fund ("SLT"), in which the taxpayer had an interest, invested in instruments (labelled as "Notes") of non-resident subsidiaries of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) - Paragraph 94.1(1)(a) the amount payable under a “debt” for s. 94.1(1)(a) purposes need not be crystallized until maturity 692
Tax Topics - Statutory Interpretation - Consistency presumption of consistent expression is not absolute 252

Moose Factory Restaurant Properties Ltd. v. The Queen, 2019 TCC 156

After quoting (at para.55) the statement in Sattva that “While the surrounding circumstances are relied upon in the interpretive process, courts...

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Words and Phrases
debt
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) arrangements were not structured to give rise to a debt 358

Barejo Holdings ULC v. The Queen, 2015 DTC 1216 [at 1405], 2015 TCC 274, aff'd on other grounds 2016 FCA 304

The question referred by the parties pursuant to Rule 58 was whether two contracts, entitled Notes and issued for US $998 million by affiliates of...

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Words and Phrases
debt indebtedness
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) "notes" which tracked actively-managed reference pool of assets were "debt" and "indebtedness" 184
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Property "notes" which tracked actively-managed reference pool of assets were "debt" and "indebtedness" 184
Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 quaere whether there is a federal law of "debt" or "charity" 334

Delle Donne v. The Queen, 2015 TCC 150

In rejecting a submission that the taxpayer was not entitled to deduct a doubtful debt reserve for unpaid interest because no written demand to...

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Words and Phrases
debt
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) reserve could be claimed on appeal 90
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(l) doubtful debt reserve claimed implicitly as at the year end in light of subsequently revealed information 542
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) bad debt deduction taken as at Dec. 31 in light of information available at April 30, and could be claimed implicitly or on appeal 478

Cloutier-Hunt v. The Queen, 2007 DTC 947, 2007 TCC 345 (Informal Procedure)

Interest awarded on a retroactive award of back pay by the Canadian Human Rights Tribunal did not represent interest on a "debt obligation" as...

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Words and Phrases
obligation debt

Re Central Capital Corporation (1996), 27 OR (3d) 494 (C.A.)

Retractable preferred shares whose holders gave notice of retraction after the corporation had become insolvent did not qualify as claims provable...

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Canada Deposit Insurance Corp. v. Canadian Commercial Bank, [1992] 3 S.C.R. 558

A syndicate including the Canadian Deposit Insurance Corportion and six major Canadian banks agreed to provide financial support to Canadian...

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Words and Phrases
loan

Fingold v. MNR, 92 DTC 2011, [1992] 2 CTC 2393 (TCC)

Before finding that payments made by a corporation to its shareholder-employees constituted debts of the employees rather than representing...

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Words and Phrases
debt
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 80.4 - Subsection 80.4(1) 69

Acmetrack Ltd. v. Bank Canadian National (1984), 4 PPSAC 199 (Ont CA)

The debtor ("Chateauvert") executed a floating charge and assignment of book debts in favour of the plaintiff ("Acmetrack"), and acknowledged...

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Words and Phrases
debenture

Re Rollies' Sport and Marine (1974) Limited (1984), 14 BLR 41 (Ont HCJ)

At issue was whether a bank had a perfected security interest in a bankrupt corporation's property. The bank had registered its security interest...

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Walsh Estate v. Minister of Finance (B.C.), [1979] CTC 251, at 257 (BCSC)

The deceased had gone through the form of a marriage in Las Vegas while he had not yet completed his divorce with his first wife, and he soon had...

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Words and Phrases
debt

Canadian Imperial Bank v. McFadzean (1978), 5 WWR 751

Wright J. stated (at p. 753):

A [family law] maintenance order does not create a property right. It is something that the court may alter or take...

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Alberta and Southern Gas Co. Ltd. v. The Queen, 76 DTC 6362, [1976] CTC 639 (FCTD), aff'd 77 DTC 5244 [1977] CTC 388 (FCA), aff'd 78 DTC 6566, [1978] CTC 780, [1979] 1 S.C.R. 36

In finding that an agreement, under which in consideration for a payment of $4 million the taxpayer obtained certain rights and privileges to...

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Words and Phrases
loan

Guay v. R., 75 DTC 5090, [1975] C.T.C. 150 (FCTD)

At the time of death of the deceased, a director of his family business corporation, he was under investigation by the Department of National...

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Words and Phrases
debt

Law v. Cobourn (Inspector of Taxes), [1972] 1 WLR 1238 (Ch D)

The taxpayer applied to the issuer ("Yeoman") for a loan of 4,000l under the company's "share investment plan" for the purpose of purchasing...

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Pizzolati & Chittaro Manufacturing Co. Ltd. v. May et al., [1971] 3 OR 768 (Ont HCJ)

One defendant sold his business to the other. As required under Ontario's Bulk Sales Act, they filed an affadavit which listed all of the...

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Beament Estate v. MNR., 69 DTC 5016, [1968] CTC 558 (Ex Ct), rev'd [1970] S.C.R. 680

The deceased died owning Class B shares of an investment company which entitled their holder to receive dividends out of all the earnings of the...

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Jamison v. United States (1968), 207 F. Supp. 221 (US Dist Ct (N.D. Calif))

California real estate developers were required to advance to the local water utilities the cost of extending new water mains to new subdivisions,...

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Standard Oil Company of British Columbia Limited v. Wood (1964), 47 W.W.R. 494 (B.C. County Ct.)

Schultz C.C.J. set aside a default judgment against the defendant applicant because it was not judgment for a "debt or liquidated money demand." ...

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International Power Co. v. McMaster University / In re Puerto Rico Power Co., [1946] S.C.R. 178, [1946] 2 DLR 81

Accrued but unpaid dividends were not a debt because there was no guarantee of payment.

Diewold v. Diewold, [1941] S.C.R. 35

The plaintiff had reclaimed the land he sold to the defendant, who had defaulted on their pay-by-instalment arrangement. The Court found that, by...

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Noble v. Lashbrook, 40 DLR 93, [1918] 1 WWR 918 (Sask CA)

After the plaintiff discovered that his sale of a threshing machine to the defendant was legally ineffective, he received an award at trial for...

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Words and Phrases
debt

The King v. Findlater, [1939] 1 KB 594 (CA)

The accused was found to have committed a securities trading offence by conspiring to sell shares (whose definition included debentures)...

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Sharpe v. First Nat. Bank of Antigo (1936), 220 Wis. 506, 264 N.W. 245 (Sup Ct of Wisc)

The plaintiff guaranteed a mortgage note given by two acquaintances ("Mr. and Mrs. Johns") to secure their guarantee of loans owing by the Antigo...

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Passaic Nat. Bank & Trust Co. v. Eelman (1936), 183 Atlantic Reporter 677, 116 N.J. 279 (Sup Ct of NJ)

In satisfaction of a prior judgment against the defendant, the plaintiff sought an order for garnishment of the monthly pension of the defendant,...

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State ex rel. City of Hannibal v. Smith (1934), 74 S.W. (2d) (Sup Ct of Missouri)

The City of Hannibal, Missouri, sold bonds, which were to be payable solely from tolls collected from traffic using the bridges. The Court found...

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Lyall & Sons Construction Co. v. Baker, [1933] 2 DLR 264 (Ont CA)

The appellant demolition company had a contractual obligation to pay the respondent construction company for a demolitions project (in exchange...

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Words and Phrases
debt

Dupuis Frères Ltd. v. Minister of Customs and Excise (1927), 1 DTC 104 (Ex Ct)

A holder of preferred shares of the taxpayer was entitled to fixed dividends and to have the shares redeemed 15 years after the date of their...

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Lemon v. Austin Friars Investment Trust Ltd., [1926] 1 Ch 1 (CA)

The appellant and others subscribed cash for "income stock certificates" of the respondent corporation, and successfully submitted that the...

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Words and Phrases
debenture

In re Touquoy Gold Mining Co. (1906), 1 E.L.R. 142 (Nova Scotia)

In finding that securities issued by a corporation that were referred to in various corporate documents as "preferred shares" and were evidenced...

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Words and Phrases
loan borrowing

Mail Printing Company v. Clarkson (1898), 25 OAR 1 (Ont CA)

An advertiser purchased the right to use certain advertising space in a newspaper over a twelve-month period. In consideration, the advertiser...

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Levy v. Abercorris Slate & Slabe Co. (1887), 37 Ch. D. 260, [1886-90] All ER 509

Chitty J. stated (at Ch.D. p. 264):

In my opinion a debenture means a document which either creates a debt or acknowledges it, and any document...

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Webb v. Stenton (1883), 11 QBD 518 (CA)

The defendant was a judgment debtor, who was entitled for his life to income from a trust fund, which was payable to him half-yearly, and who had...

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Pickering v Ilfracombe Rv Co (1868), LR 3 CP 235, 37 LJCP 118, 16 LT 650, 10 WR 458 (Ct of Common Pleas)

The defendant company had made a capital call on its shareholders of 5l a share, and assigned that call to the plaintiff as security for an amount...

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Administrative Policy

4 February 2015 External T.I. 2015-0565741E5 - Canadian-controlled private corporation

Before finding that an indemnity agreement was not "indebtedness," CRA discussed authorities on "indebtedness" including Fingold, Beament and

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Words and Phrases
indebtedness
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) s. 256(5)(b) applied to acquisition right upon default under indemnity 167
Tax Topics - Income Tax Act - Section 256 - Subsection 256(6) s. 256(6) does not protect a company's CCPC status where its shares are pledged to a pubco to secure an indemnity, not debt 235

19 June 2014 External T.I. 2014-0519881E5 - T5 reporting requirements

In Year 1, Canco issued unsecured convertible Debentures bearing interest that is payable only on maturity one year later in Year 2. In finding...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 201 - Subsection 201(4) debenture with interest payable on 1-year maturity not an investment contract 161

5 November 2013 External T.I. 2013-0501241E5 F - Application of subsection 39(2)

CRA noted that a "dividend, at the moment of declaration, becomes a debt of the corporation which declared it to the shareholder ... ."

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) declared dividend is a debt to which s. 39(2) applies 141

29 August 2011 Internal T.I. 2009-0336671I7 - Derivative

Interest rate swap transactions between a controlled foreign affiliate of the taxpayer ("BCo") and a foreign financial institution specializing in...

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Words and Phrases
loan
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Timing 193

23 March 2004 External T.I. 2003-0049031E5 F - Paragraphe 15(2) de la Loi et "montant remis"

A loan was made to an adult child of the sole shareholder of the lender (Opco) in order to pay the tuition fees, where it was anticipated that...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2) loan that was anticipated to be forgiven was not a bona fide loan, so that s. 15(2) did not apply 190
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.21) inclusion under s. 56(2) avoided second inclusion under s. 15(1.21) 296
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Excluded Obligation loan included in income under s. 15(2) was excluded obligation re its subsequent forgiveness 209

24 March 2005 Internal T.I. 2005-0115921I7 - Specified debt obligations & loan originating cost

Conditional sales contracts purchased by a corporation likely would qualify as "debt obligations," so that the corporation would qualify as a...

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Words and Phrases
debt

17 February 1993 Memorandum 93020

The taxpayer advanced a sum to purchase a shopping mall and subsequently sued to recover the amount. This sum was not a debt for purposes of...

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March 1991 T.I. (Tax Window, No. 1, p. 15, ¶1138)

Where on the termination of his employment, the employee enters into an arrangement with the employer whereby certain amounts are notionally...

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1 August 1990 External T.I. 5-900756

"The term 'debt obligation', as used in subsection 12(3), is not defined in the Act and accordingly must be interpreted in its ordinary meaning....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(3) 60

26 April 1990 T.I. (September 1990 Access Letter, ¶1443)

The alteration of a note from a non-interest bearing note to an interest-bearing one would be considered material, and accordingly would result in...

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84 C.R. - Q.12

A debt obligation arises whenever a binding liability is created and the principal amount of the liability can be quantified.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(4) 40

Articles

C.R.B. Dunlop, Creditor-Debtor Law in Canada, Second Edition (1994).

Usual meaning of "debt" (pp. 12-13)

In most situations in which lawyers use the word "debt", however, their intention is to describe something...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Payment & Receipt 582

Kevin Kelly, "Callable and Extendible Step-Up Notes", Corporate Finance, Vol. XI, No. 4, 2004, p. 1127

Callable step-up notes are not investment contracts.