Subsection 161(1) - General
Cases
Quinco Financial Inc. v. Canada, 2018 FCA 137
In 2009, the Minister reassessed to deny capital losses claimed by predecessors of the taxpayer for their 2004 taxation years. In a Rule 58...
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| Tax Topics - Income Tax Act - Section 157 - Subsection 157(1) - Paragraph 157(1)(b) | GAAR assessment for prior year was payable as at the balance-due date | 182 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | taxpayers do not “apply” GAAR, but GAAR liability accrues before reassessment | 284 |
Canada v. Zelinski, 2000 DTC 6001 (FCA)
The Court rejected the submission of the taxpayer that given that s. 158(8) deemed an assessment to be valid and binding until the time of the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(i.1) | 212 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Commodities, and commodities futures and derivatives | paintings acquired on capital account for donation | 136 |
Wargacki v. The Queen, 92 DTC 6336, [1992] 1 CTC 269 (FCTD)
Joyal J. recommended that the Crown remit interest on the tax payable by the taxpayer that accrued between June 17, 1986 and the date his formal...
Her Majesty the Queen v. Union Gas Limited, 90 DTC 6659, [1991] 1 CTC 1 (FCA)
For its 1978 taxation year ending March 31, 1978 the taxpayer remitted $8,916,000 and then in June 1978 directed Revenue Canada to apply...
Rath v. The Queen, 82 DTC 6175, [1982] CTC 207 (FCA)
The taxpayer’s employer deducted amounts from his salary and remitted such amounts on his behalf as payment towards his tax liability for his...
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| Tax Topics - Income Tax Act - Section 178 - Subsection 178(1) | 33 | |
| Tax Topics - Income Tax Act - Section 62 | 53 |
Galway v. M.N.R., 74 DTC 6247, [1974] CTC 313 (FCA)
On an application for a consent judgment, the Court of Appeal lacked the jurisdiction to refer an assessment back to the Minister to reassess the...
See Also
Isah v. The Queen, 2018 TCC 28 (Informal Procedure)
After confirming the Minister’s reassessments including for gross negligence penalties, Russell J stated (at para 17):
…I note that the...
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| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | TCC has jurisdiction to address incorrectly computed assessment interest | 157 |
Quinco Financial Inc v. The Queen, 2016 TCC 190, aff'd 2018 FCA 137
In 2009, the Minister reassessed the taxpayer under GAAR for its taxation year ending August 27, 2004 to deny the tax benefit from a revised...
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| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | taxpayers can be required to apply GAAR to themselves | 147 |
J.K. Read Engineering Ltd. v. The Queen, 2014 DTC 1216 [at 3872], 2014 TCC 309
After finding that GAAR applied to deny capital losses of the taxpayers from the time of the abusive transactions giving rise to them rather than...
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|---|---|---|
| Tax Topics - General Concepts - Stare Decisis | weight of obiter depends on fulness of argument | 93 |
| Tax Topics - General Concepts - Stare Decisis | weight of obiter depends on fullness of argument | 93 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(7) | GAAR applies to impose liability for abusive transactions from inception | 254 |
Ford v. The Queen, 95 D.T.C 848, [1994] 2 CTC 2395 (TCC)
The taxpayer did not file a 1991 return on or before April 30, 1992 because she had no income tax payable for that year. When a subsequent court...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(1) | 98 |
Administrative Policy
25 January 2024 Internal T.I. 2023-0973901I7 - Loss carryback and 152(4)(b)(ii)
The initial assessment of a particular year of the taxpayer resulted in an amount of tax payable, which remained unpaid, so that interest accrued...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | CRA could, but is not required, to amend a statute-barred year to replace an inventory with a capital gain | 215 |
11 May 2023 Internal T.I. 2022-0936701I7 - Interest on adj income by a loss carry forward
A taxpayer reported a capital loss in year 1 of $50 million, which was applied to offset a $1 million capital gain realized in year 1 and a $49...
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| Tax Topics - Income Tax Act - Section 161 - Subsection 161(7) | S. 161(7) not relevant where loss carryforward | 139 |
26 November 2020 STEP Roundtable Q. 2, 2020-0840001C6 - Subsection 104(13.4) and LCBs
The death of the settlor of an alter ego trust, or the death of the survivor of spouses for a joint spousal trust, on July 31 triggers (under s....
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| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13.4) - Paragraph 104(13.4)(c) | a capital loss in the tax year following the death of an alter ego trust’s settlor can eliminate interest on the terminal T3 return’s 104(4)(a) gain | 431 |
15 October 2007 External T.I. 2007-0239491E5 F - Prepayment of Reassessments
CRA stated that it:
accepts advance payments made by corporations in anticipation of a reassessment under the Act.
This allows the corporation to...
19 November 2003 Internal T.I. 2003-0047687 F - Interest Calculation T/P Adjustment RQST
CCRA indicated that where the taxpayer requested the reversal of CCA claims made for two taxation years and the simultaneous carryback of...
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| Tax Topics - Income Tax Act - Section 161 - Subsection 161(7) - Paragraph 161(7)(a) - Subparagraph 161(7)(a)(iv) | substitution of NCL carrybacks with CCA claims for nil assessment taxation years does not generate s. 161(1) interest | 137 |
91 C.R. - Q.61
RC will credit a voluntary payment as being on account of the year subject to a waiver effective from the date of payment where RC has identified...
10 June 1991 T.I. (Tax Window, No. 4, p. 23, ¶1290)
Where RC agrees to a request to substitute one type of loss for another and there is no Part I tax either on the original assessment or the...
87 C.R. - Q.73
RC has established tolerances to provide relief where payments are received within certain time frames and where interest to the date of payment...
Subsection 161(2) - Interest on instalments
Administrative Policy
93 C.R. - Q. 50
Since the introduction of the instalment reminder system in March 1992, it has been departmental policy to charge neither instalment interest nor...
86 C.R. - Q.66-69
Re change from contra method to deficiency method; and maintenance of instalment accounts.
85 C.R. - Q.32
RC will permit a transfer of instalment payments previously made to the account of the same taxpayer for a later or earlier taxation year, and a...
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| Tax Topics - Income Tax Act - Section 164 - Subsection 164(2) | 28 |
Subsection 161(2.2) - Contra interest
Administrative Policy
87 C.R. - Q.74
Discussion of interest offset method.
Subsection 161(4.1) - Limitation — corporations
See Also
I.G. (ROCKIES) Corp. v. The Queen, 2005 DTC 289, 2005 TCC 51 (Informal Procedure)
For the purpose of computing interest on late and deficient instalment payments, the taxpayer was entitled to utilize the instalment method in s....
Subsection 161(7) - Effect of carryback of loss, etc.
Cases
Connaught Laboratories Limited v. The Queen, 94 DTC 6697 (FCTD)
When the taxpayer was reassessed for its 1981 taxation year on the basis that it had realized a taxable capital gain, it choose to eliminate the...
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| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 33 |
See Also
Zandi v. The Queen, 2012 DTC 1246 [at 3707], 2012 TCC 259 (Informal Procedure)
The taxpayer filed his 2007 and 2008 returns on 29 July 2009. He had $289,707,38 of taxable capital gains for 2007, which was reduced to...
Administrative Policy
11 May 2023 Internal T.I. 2022-0936701I7 - Interest on adj income by a loss carry forward
A taxpayer reported a capital loss in year 1 of $50 million, which was applied to offset a $1 million capital gain realized in year 1 and a $49...
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| Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) | no arrears interest would arise where non-capital loss carryforwards eliminated a tax payable balance arising from reassessments | 196 |
29 March 2011 External T.I. 2009-0351721E5 - Interest/ Penalty on Taxpayer-Requested Adjustment
Where a taxpayer which is a member of an associated group requests a reduction to nil in in the small business limit allocated to it under s....
93 C.R. - Q. 49
Where three years subsequent to the claiming of a capital gains exemption, it is determined that the capital gain should actually have been...
88 C.R. - F.Q.9
Interest may be payable on a reassessment of a taxation year even if the resulting taxable income then is reduced by the carryback of a subsequent...
86 C.R. - Q.70
Interest on unpaid taxes arises where a taxable capital gain of year 2 originally is offset by a non-capital loss of year 1, then that non-capital...
Paragraph 161(7)(a)
Subparagraph 161(7)(a)(iv)
Administrative Policy
19 November 2003 Internal T.I. 2003-0047687 F - Interest Calculation T/P Adjustment RQST
The taxpayer requested that CCA it had claimed for two taxation year be reversed and replaced by the carryback of equal amounts of a non-capital...
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| Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) | substitution of NCL carrybacks with CCA claims for nil assessment taxation years does not generate s. 161(1) interest | 60 |
Paragraph 161(7)(b)
Administrative Policy
21 March 2018 External T.I. 2017-0736291E5 - Interest calculation - loss substitutions
Aco first applied a $1,000 non-capital loss from Year 1 to offset a $1,000 taxable capital gain realized in Year 2. However, it then realized a...
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| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(b) | net capital loss carried back from Year 3 replaces non-capital loss carryforward from Year 1 without interest cost | 146 |
Subparagraph 161(7)(b)(ii)
Administrative Policy
12 February 2002 Internal T.I. 2002-0119057 F - Perte du décédé et intérêt
After the estate of Ms. X elected to carry back capital losses to her terminal return, CCRA assessed arrears interest from the date of filing of...
Subparagraph 161(7)(b)(iv)
See Also
The Bank of Nova Scotia v. The Queen, 2021 TCC 70
On March 12, 2015, the taxpayer Bank wrote to the Minister to ask that $54 million of non-capital loss from its 2008 taxation year be carried back...