Paragraph 18(1)(a) - General limitation

Cases

Oriole Oil & Gas Ltd. v. The Queen, 91 DTC 5143 (FCTD)

After the two shareholders and principals of a private company decided to seek a purchaser for their shares, they entered into a contract with...

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The Queen v. MerBan Capital Corp. Ltd., 89 DTC 5404, [1989] 2 CTC 246 (FCA)

"Paragraph 18(1)(a) is not ... a provision which entitles a taxpayer to deduct an amount paid. Rather paragraph 18(1)(a), expressed in negative...

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Green Acres Fertilizers Services Ltd. v. The Queen, 79 DTC 5346, [1979] CTC 431, aff'd 80 DTC 6365, [1980] CTC 504 (FCA)

An argument, that the payment of premiums by a company in respect of life insurance policies, that were designed to fund a shareholders' buy-sell...

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Hutterian Brethren Church of Wilson v. The Queen, 79 DTC 5474, [1980] CTC 1, 79 DTC 5479 (FCA)

There was no statutory basis for an incorporated Hutterite colony to deduct the fair market value (as opposed to the cost) of services provided to...

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Meteor Homes Ltd. v. MNR, 61 DTC 1001, [1960] CTC 419 (Ex. Ct.)

After noting that in a previous case, a payment made to shareholders had been found to be a capital receipt to them, and before finding that the...

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See Also

Larkin v. The Queen, 2020 TCC 98 (Informal Procedure)

A retirement-age geologist with decades of successful experience as a prospector, entrepreneur and inventor worked on a number of unsuccessful...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit geologist with past successes but no current income was carrying on business 294
Tax Topics - General Concepts - Evidence spreadsheet was sufficient documentation of various claimed expenses 99

Ferguson-Neudorf Glass Inc v. The Queen, 2009 DTC 179, 2008 TCC 684

A fine which the taxpayer paid under the Occupational Health & Safety Act (Ontario) for the offence of failing "to provide information,...

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Stewart v. The Queen, 98 DTC 1600, [1998] 3 CTC 2662 (TCC)

The taxpayer financed virtually all of the purchase price of four rental units using borrowed money after reviewing offering documents that...

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Bellin v. The Queen, 95 DTC 729 (TCC)

The taxpayer, which had realized intermittent small profits from the operation of a small department store up until 1986, was found to no longer...

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Pioneer Designs Corp. v. MNR, 91 DTC 293, [1990] 2 CTC 2446 (TCC)

In finding that accrued bonuses were deductible as expenses (as opposed to being distributions of profit) notwithstanding that they were...

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Lawrence v. MNR, 90 DTC 1491, [1990] 1 CTC 2567 (TCC)

The taxpayer, who acquired an interest in a MURB was unable to deduct his proportionate share of certain expenses paid by the vendors while the...

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Schuler v. MNR, 90 DTC 1078, [1990] 1 CTC 2264 (TCC)

It was found that the taxpayers were the beneficial owners of MURB properties during their construction phase and that the construction costs were...

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British Sugar Manufacturers, Ltd. v. Harris (1937), 21 TC 528 (C.A.)

A company, which was in financial difficulty, agreed to pay 20% of its net profits for a four-year period to creditors "in consideration of their...

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Union Cold Storage Co., Ltd. v. Adamson (1931), 16 T.C. 327 (H.L.)

The taxpayer leased lands and premises for a quarterly fixed rent subject to a proviso to the effect that if its profits for a calendar year were...

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Administrative Policy

AD-18-01: Taxable Benefit for the Personal Use of an Aircraft

After noting the distinction between personal use of a corporate aircraft qua employee and qua shareholder, CRA stated:

Where the benefit was...

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1994 A.P.F.F. Round Table, Q. 9

"In the case of gift certificates given by a corporation to its clients, in order to ensure that the expense claimed is valid and that the amount...

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88 CR - Q.60

Except where s. 7(3) is applicable, the issue of shares from treasury will generally represent the payment of an otherwise deductible expense.

Articles

Dionne, "Employee's Expenses for Setting Up Pension Plan Are Not Allowed as Deduction", Taxation of Executive Compensation and Retirement, May 1990, p. 282

RC's view that RRSP fees are deductible apparently does not extend to employer-sponsored retirement savings vehicles.