Subsection 171(1) - Disposal of Appeal
Cases
Canada v. Dow Chemical Canada ULC, 2022 FCA 70, leave granted 23 February 2023
In reassessing the taxpayer under s. 247(2), the Minister did not allow a requested “downward” adjustment under s. 247(10) (to increase the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.5 | Ministerial decision to deny a s. 247(10) downward adjustment cannot be appealed under s. 247(11) and, therefore, is not rendered non-reviewable by s. 18.5 | 259 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(11) | Ministerial decision to deny a s. 247(10) downward adjustment cannot be appealed under s. 247(11) | 176 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(10) | Tax Court cannot review a s. 247(10) downward adjustment because it only has the ITA s. 171 jurisdiction to deal with an assessment and not with a s. 247(10) opinion | 354 |
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(1) | an appeal of an assessment is of an amount, not of an opinion leading to the assessment | 157 |
Canada v. Oxford Properties Group Inc., 2018 FCA 30
Before overturning the findings below that the transactions in question had not abused ss. 97(2) and 100(1), so that s. 245 applied, Noël CJ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | using the s. 88(1)(d) bump on newly-formed rental property LPs to avoid indirect recapture income under s. 100(1) was abusive | 975 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | s. 88(1)(d) bump is intended to permit the transfer of ACB that otherwise would be lost to another property that is taxed in the same way | 371 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | s. 98(3)(c) bump is intended to avoid gain realization where there has been no economic gain | 267 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | 3-year time limitation in s. 69(11) did not establish safe harbor for avoidance of recapture on sale after that period | 382 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) | purpose is to ensure that latent recapture will be recognized on sale to tax exempt | 254 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | object includes ultimate taxation of the deferred gain | 234 |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | statement that amendment was for “clarification” was self-serving | 209 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | determination of whether amendment merely clarified requires review of pre-amendment state of law | 146 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | consequential s. 245(2) adjustment must be scaled to the abuse | 391 |
Kruger Incorporated v. Canada, 2016 FCA 186
A reassessment added back $72M to the taxpayer’s income for 1998, being the difference between its claimed mark-to-market loss on its options of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Timing | non-statutory mark-to-market accounting was permissible under s. 9 | 468 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Inventory | derivatives not held for resale are not inventory | 175 |
Imperial Oil Resources Limited v. Canada (Attorney General), 2016 FCA 139
The second taxpayer (“IOVRL”), like the first, took the position that remission payments should be treated in the same manner for purposes of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(7) | remission payment did not generate interest entitlement | 299 |
Jaft Corporation v. Canada (AG), 2014 DTC 5080 [at 7056], 2014 MBQB 59
CRA had found that the applicant's research into solutions for Sick Building Syndrome based on air treatment qualified for scientific research and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | attempt to rescind employment contracts, on the basis that employees had not satisfied scientific research & experimental development requirements, was retroactive tax-planning | 210 |
SRI Homes Inc. v. Canada, 2012 DTC 5135 [at 7284], 2012 FCA 208, allowing appeal from 2011 TCC 386
The trial judge's reasons essentially paraphrased: an agreed statement of facts, the Minister's assertions, a copy of the Minister's framing of...
Canada v. Nunn, 2007 DTC 5111, 2006 FCA 403
The trial Judge on her own initiative, without this issue being raised in the pleadings or argued, had found that an investment by the taxpayer...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Sham | misrepresentation element of sham | 87 |
| Tax Topics - General Concepts - Tax Avoidance | misrepresentation element of sham | 87 |
Rezek v. Canada, 2005 DTC 5373, 2005 FCA 227
Absent the finding of the Tax Court judge that a convertible hedge is a separate property, the appeals of the taxpayer would have been allowed....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(d) | s. 39(4) elections that were made with late-filed returns were valid as being made "in the taxpayer's return" | 146 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | spread comprising a convertible security and rights under short sale was not a single property | 129 |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(4) | requirement to file election with return is satisfied even if return is late | 144 |
| Tax Topics - Income Tax Act - Section 96 | spouse carrying on linked legs of integrated trading transactions | 204 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 54 |
Pedwell v. The Queen, 2000 DTC 6405 (FCA)
The Tax Court Judge had erred in finding the taxpayer liable on a basis different from that in the Minister's notice of reassessment which was at...
La Compagnie Price Limitée v. The Queen, 95 DTC 428 (TCC)
The Minister reassessed the taxpayer in accordance with a Federal Court judgment issued pursuant to a consent to judgment (as subsequently...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Stare Decisis | 141 |
The Queen v. Optical Recording Laboratories Inc., 90 DTC 6647, [1990] 2 CTC 524 (FCA)
A reassessment, which was in the same amount as a previous assessment except that it assessed accrued interest, was therefore a reassessment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 29 | 117 | |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(1) | 49 |
Sharip v. The Queen, 87 DTC 5206, [1987] 1 CTC 302 (FCTD), aff'd 88 DTC 6484, [1988] 2 CTC 344 (FCA)
Until such time as a formal decision pursuant to s. 171(4) has been made, the judge has the power to reconsider his decision as to the disposition...
McCambridge v. The Queen, 79 DTC 5412, [1979] CTC 473 (FCA)
"If Parliament had intended to provide that one means of disposing of an appeal could be by way of filing a notice of discontinuance, it would...
Vineland Quarries and Crushed Stone Ltd. v. MNR, 70 DTC 6043, [1970] CTC 12 (Ex Ct)
The taxpayer filed a notice of appeal to an assessment by the Minister which reflected a disallowance of a portion of the taxpayer's capital cost...
See Also
Gillies v. The King, 2024 TCC 53 (Informal Procedure)
Mr. Gillies sought a Tax Court decision regarding his 2016 and 2017 taxation years that he was not responsible to the Minister for tax under the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 222 - Subsection 222(2) | alleged failure of CRA to credit an employee for source deductions made but not remitted was a collection matter within Federal Court jurisdiction under s. 222(2) | 101 |
Canadian Imperial Bank of Commerce v. Canada, 2023 FCA 195
Webb JA found that the Tax Court could make a mixed finding of fact and law (as to the nature of a supply made having regard to the ETA definition...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Res Judicata | res judicata (issue estoppel) did not apply where a retroactive amendment brought to the fore in the 2nd appeal of CIBC whether it was receiving a supply of property | 426 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.5) | predominant element supplied by a Loblaw banking sub to CIBC was a right to access Loblaw customers | 264 |
| Tax Topics - Excise Tax Act - Section 309 - Subsection 309(1) | Tax Court could make a mixed finding of fact and law (as to the nature of a supply) that was on a basis different than argued by either party | 173 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | provision of access to customers was "property" | 96 |
Canadian Imperial Bank of Commerce v. Canada, 2021 FCA 96
After finding that, under an agreement between the appellant (CIBC) and Aeroplan, the supply made by Aeroplan to CIBC was essentially labelled as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | agreement between bank and Aeroplan labelled the bank as receiving promotional services rather than purchasing Aeroplan Miles (being, mooted gift certificates) | 477 |
| Tax Topics - Excise Tax Act - Section 181.2 | Aeroplan Miles were considered, by the sole Justice addressing the issue, to be gift certificates since no significant conditions to their redemption | 348 |
| Tax Topics - Excise Tax Act - Section 309 - Subsection 309(1) | Tax Court not bound by an admission contrary to the evidence before it | 173 |
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 27 - Subsection 27(1.3) | fresh argument could not be made by taxpayer at the Court of Appeal level | 190 |
Leonard v. The Queen, 2021 TCC 33, rev'd 2022 FCA 195
After noting an admission by the Crown that the taxpayer had realized a loss on mortgage debt on foreclosure proceedings notwithstanding that, as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss - Debt | loss on mortgage that was acquired in order to acquire the underlying property under foreclosure proceeding on income account was also from an adventure | 347 |
| Tax Topics - Income Tax Act - Section 9 - Timing | cost of mortgage debt acquired as adventure not deductible when expended | 53 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | foreclosure proceedings resulted in disposition of the mortgage but not of the debt it had previously secured | 471 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) - Subparagraph (b)(i) | on a foreclosure, the taxpayer disposed of his mortgage, even though the debt it secured remained outstanding | 429 |
| Tax Topics - General Concepts - Evidence | Manitoba law, being where the Tax Court hearing was held, was the lex fori governing the mortgage foreclosure proceeding at issue regarding a U.S. property | 178 |
Dow Chemical Canada ULC v. The Queen, 2020 TCC 139, rev'd 2022 FCA 70
In reassessing the taxpayer under s. 247(2), the Minister did not allow a requested “downward” adjustment under s. 247(10) (to increase the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(10) | TCC has jurisdiction to review whether a CRA denial of a downward s. 247(10) adjustment was “correct in fact and law" | 806 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(11) | s. 247(11) only addresses penalty assessments | 197 |
Rousseau v. Agence du revenu du Québec, 2020 QCCA 1308
The taxpayer, who had been employed in Alberta and been subject to source deductions based on the federal and Alberta rates, was found by the...
Wiegers v. The Queen, 2019 TCC 260 (Informal Procedure)
The taxpayers, who had participated in a gifting tax shelter, claimed that they had not learned of a settlement offer made to other participants...
Sterritt v. The Queen, 2018 TCC 117 (Informal Procedure)
The taxpayer stopped filing his tax returns beginning with the 2003 taxation year. Following a request by CRA, in February 2014 the taxpayer filed...
Isah v. The Queen, 2018 TCC 28 (Informal Procedure)
The taxpayer, through the services of a now elusive “Mr. K,” had claimed charitable donations totalling approximately $18,000 for his 2009 to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) | TCC has jurisdiction to correct incorrectly computed assessment interest | 105 |
R & S Industries Inc. v. The Queen, 2017 TCC 75
R & S Industries was unsuccessful in a motion to have the Federal Court direct CRA to reconsider its decision to not permit R & S Industries to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | taxpayer is not bound by the statement of boot set out in its s. 97(2) election form | 367 |
Deluca v Canada, 2016 ONSC 3865
The taxpayer used proceeds of a loan from “Barter World Canada Inc.” to acquire “TradeBux” from another Barter World entity (as well as to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Subsection 15(1) | tax shelter participants are not an analogous class | 95 |
| Tax Topics - General Concepts - Negligence, Fiduciary Duty and Fault | CRA has no duty to protect taxpayers from participating in tax shelters | 362 |
Delle Donne v. The Queen, 2015 TCC 150
Respecting an argument that the taxpayer was required by s. 20(1)(l) or (p) to have "included" the interest in income before being entitled to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract | "debt" exists irrespective of demand | 99 |
| 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 |
Descarries v. The Queen, 2014 DTC 1143 [at 3412], 2014 TCC 75 (Informal Procedure)
Hogan J found that the transactions at issue abused the object of s. 84.1, a general anti-avoidance rule analysis which the Crown had not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | use of outside basis to step up PUC abused s. 84.1 | 544 |
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | holdco distribution made out of loan from still-operating sub - s. 84(2) did not apply | 521 |
Fio Corporation v. The Queen, 2014 TCC 58
The taxpayer was reassessed for its 2007 and 2008 taxation years, appealed to the Tax Court and then was further reassessed based on documents...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | implied undertaking of confidentiality during discovery | 196 |
| Tax Topics - Income Tax Act - Section 241 | s. 241 does not override implied undertaking rule | 153 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Act - Section 17.2 | time of commencement of appeal | 150 |
Anonby v. The Queen, 2013 DTC 1154 [at 859], 2013 TCC 184 (Informal Procedure)
The taxpayer reported $42,000 of employment income on his return, and received a refund of approximately $4,000 based on $13,000 of source...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) | no declaration as to source deductions, or vacating of reassessment that would increase substantive liability | 241 |
Blackburn Radio Inc. v. The Queen, 2012 DTC 1213 [at 3580], 2012 TCC 255
In 2009 the Tax Court found that a 2004 reassessment in respect of the taxpayer's 1999 taxation year had been made outside of the limitations...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | 133 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.3) | no further reassessment permitted if order to vacate or vary | 298 |
SoftSim Technologies Inc. v. The Queen, 2012 DTC 1187 [at 3473], 2012 TCC 181
D'Auray J. found that the Court had jurisdiction to enforce a settlement agreement between the taxpayers and the Minister. S. 169(3) provides...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | consent of counsel binding | 104 |
| Tax Topics - General Concepts - Onus | 79 | |
| Tax Topics - Income Tax Act - Section 169 | 116 | |
| Tax Topics - General Concepts - Solicitor-Client Privilege | 117 |
Du-Perré c. La Reine, 2006 DTC 2965, 2004 TCC 773
In finding that in the Minister's Reply to the Notice of Appeal of the taxpayer, the Minister was entitled to allege that a number of transfers of...
Paradis v. The Queen, 2004 TCC 676 (Informal Procedure)
The Minister assessed the taxpayer’s return as filed, and applied the resulting refund amount by way of set-off against a student loan amount...
Sudbrack v. The Queen, 2000 DTC 2521 (TCC)
Bowman A.C.J. found that The Queen v.Continental Bank of Canada, 98 DTC 6501, [1998] 2 S.C.R. 358 merely applied the long-standing rule governing...
Wendy Ann Eves Curoe v. Minister of National Revenue, 91 DTC 782, [1991] 1 CTC 2513 (TCC)
The taxpayer, which did not receive notification of the Tax Court hearing, was successful in having that judgment set aside on the basis of the...
Laskaris v. MNR, 90 DTC 1364, [1990] 1 CTC 2464 (TCC)
The taxpayer's accountant and a Revenue Canada appeals officer send an application to the Tax Court to withdraw the taxpayer's appeal with the...
McMillen Holdings Ltd. v. MNR, 87 DTC 585, [1987] 2 CTC 2327 (TCC)
The taxpayer, which had received a dividend refund for its taxation year ended July 31, 1982, on August 22, 1983, appealed to the Tax Court...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(7) | dividend refund not an overpayment of tax | 210 |
Dominion Stores Ltd. v. Dep. MNR, 82 DTC 6214, [1982] CTC 235, 82 DTC 6217 (FCA)
It was stated that a concession by the respondent that the processing of ground beef constituted "the manufacture or production of goods" for...
Administrative Policy
3 June 2014 Internal T.I. 2013-0489471I7 - Subsection 171(1)
Was the Minister permitted to issue a reassessment in order to give effect to a Court's order to vacate or vary an assessment under s. 171(1)? CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.3) | no power to reassess following order to vacate or vary | 107 |
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(1) | appeal from varied assessment | 106 |
Articles
Zahra Nurmohamed, "Settling Tax Disputes - An Unsettling Proposition", Tax Litigation, Vol. X, No. 3, 2002, p. 638
Discussion of the Galway Doctrine.
McGregor, "Resolving Tax Disputes: A Justice Perspective", 1994 Conference Report, c. 30
Includes a discussion of the perceived judicial constraints upon the nature of a settlement that may be reached.
Paragraph 171(1)(b)
Cases
Canada v. CBS Canada Holdings Co., 2020 FCA 4
Justice and the taxpayer (CBS) executed Minutes of Settlement including a Schedule specifying the portion of a $23.4 million non-capital loss to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(3) | Galway did not permit the Crown to resile from a settlement agreement negotiated in good faith | 283 |
Subparagraph 171(1)(b)(iii)
Cases
Dow Chemical Canada ULC v. Canada, 2024 SCC 23
In connection with finding that the Tax Court did not have the jurisdiction to review decisions of the Minister under s. 247(10), Kasirer J...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(10) | the Tax Court lacks jurisdiction to review CRA decisions regarding s. 247(10) downward adjustments | 697 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | assessment is a product and does not reference the process in arriving at it | 43 |
Almadhoun v. Canada, 2018 FCA 112
The taxpayer received the Canada child tax benefit (the CCTB) for 2010, 2011, 2012 and 2013, but then was informed by CRA on April 15, 2014 that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 122.6 - Eligible Individual - Paragraph (e) | unsuccessful refugee claimant who was subsequently permitted to stay on compassionate grounds did not qualify | 330 |
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Subsection 15(1) | immigrant status not a protected s. 15 characteristic | 261 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | supposed purpose cannot supplant clear language | 79 |
See Also
Mandic Estate v. The King, 2024 TCC 91
Mandic reached a form of agreement with the Crown regarding a reassessment of his 2015 taxation year, and the parties signed a consent to judgment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 126 - Subsection 126(4) - Paragraph 126(4)(b) | discretion accorded by the Rules assisted in implementing an unsigned settlement agreement | 278 |
Subsection 171(2)
Cases
Patel v. Canada, 2020 FCA 27
In reversing a decision of the Tax Court judge that s. 171(2) could not be applied to the appeal of the two taxpayers, Nadon J.A. stated (at...