Cases
Potash Corporation of Saskatchewan Inc. v. Canada, 2024 FCA 35
The taxpayer (PCS), which produced and sold potash from mines in Saskatchewan, was subject to both a profit tax and to the making of “base...
Paletta International Corporation v. Canada, 2021 FCA 182
Hogan J had found that a tax shelter partnership, which had funded the prints and advertising expenses for films that it had purchased from...
Canadian Imperial Bank of Commerce v. Canada, 2013 DTC 5098 [at at 6020], 2013 FCA 122
The taxpayer paid approximately $3 billion in settlements relating to claims that it or its subsidiaries were jointly and severally liable with...
Lyncorp International Ltd. v. Canada, 2012 DTC 5032 [at at 6684], 2011 FCA 352, aff'g 2010 DTC 1351 [at 4335], 2010 TCC 532
The taxpayer, owned and operated by Mr. Mullen, invested in shares and made non-interest bearing loans to a number of corporate ventures to which...
Teck Corp. v. The Queen, 2005 DTC 5338, 2004 BCCA 514
Mining taxes paid by the taxpayer to the provinces of Ontario, Quebec and Newfoundland and Labrador were income taxes the deduction of which was...
McNeill v. The Queen, 2000 DTC 6211 (FCA)
Some years after the taxpayer sold his chartered accountancy practice to another firm, he was ordered to pay damages and costs of $465,908 in...
65302 British Columbia Ltd. v. Canada, 99 DTC 5799, [1999] 3 S.C.R. 804
The taxpayer, which was a registered egg producer, deliberately produced over quota in order to maintain its major customer, (who was expanding),...
Taylor v. R., 97 DTC 5120, [1997] 2 CTC 201 (FCA)
In a situation where the taxpayer had misappropriated funds from 1986 to 1989, then effected restitution in 1990, Linden J.A. stated that "the...
Amway of Canada. Ltd. v. The Queen, 96 DTC 6135, [1996] 2 CTC 162 (FCA)
Strayer J.A. found that all amounts paid by the taxpayer to Revenue Canada in settlement of an enforcement action brought against it pursuant to...
Tonn v. The Queen, [1996] 1 CTC 205 (FCA)
Before going on to find that rental losses incurred by the taxpayers were fully deductible by them, Linden J.A. stated (at p. 6005) that s....
Poetker v. MNR, 95 DTC 5614, [1996] 1 CTC 202 (FCA)
Before affirming the finding of the Tax Court judge that the taxpayer was not able to deduct persistent losses from two condominium units that the...
Symes v. Canada, 94 DTC 6001, [1993] 4 S.C.R. 695, [1994] 1 CTC 40
Before indicating that it was unnecessary to determine whether there should be a change in the traditional position that child care expenses (in...
The Queen v. Shefner Estate, 93 DTC 5482, [1993] 2 CTC 273 (FCTD)
The expropriation committee of the City of Anjou threatened to pursue criminal and civil action against the taxpayer and a corporation owned by...
Parkland Operations Limited v. Her Majesty the Queen, 90 DTC 6676, [1991] 1 CTC 23 (FCTD)
A loss of $563,396 which the taxpayer suffered from defalcations made by minority shareholders was found to have resulted from wrongful draw-downs...
Graves v. The Queen, 90 DTC 6300 (FCTD)
The taxpayers were entitled to deduct a portion of their house expenses based on the square footage of 1/2 of their basement relative to their...
Friedland v. The Queen, 89 DTC 5341, [1989] 2 CTC 79 (FCTD)
The taxpayer was able to deduct the payment by it of expenses incurred by its individual shareholder in connection with driving his BMW and Rolls...
La Compagnie Idéal Body Inc. v. The Queen, 89 DTC 5344, [1989] 2 CTC 187 (FCTD)
A private corporation which prior to the death of its principal shareholder had regularly declared and paid bonuses to him of under $100,000 was...
Moloney v. The Queen, 89 DTC 5062, [1989] 1 CTC 162 (FCTD), aff'd 92 DTC 6570 (FCA)
The taxpayer and other individuals each paid $20,000 to an off-shore corporation ("Applied Research") purportedly as a pre-paid royalty for a...
Mattabi Mines Ltd. v. Ontario (Minister of Revenue), [1988] 2 CTC 294, [1988] 2 S.C.R. 175
In response to a submission that mining machinery and equipment had not been purchased "for the purpose of earning income" because the profits...
Mott v. The Queen, 88 DTC 6359, [1988] 2 CTC 127 (FCTD)
Since travelling expenses incurred for the purpose of commuting between one's place of residence and place of business are not deductible,...
The Queen v. Royal Trust Corp. of Canada, 83 DTC 5172, [1983] CTC 159 (FCA)
It was noted that the question to be answered under s. 18(1)(a) (unlike S.6(1)(a) of the Income War Tax Act, 1948) is whether the outlay or...
The Queen v. Dorchester Drummond Corp. Ltd., 79 DTC 5163, [1979] CTC 219 (FCTD)
The defendant company bought land with the intention of building a highrise office building thereon, but instead operated a parking lot on the...
Deputy Minister of Revenue (Quebec) v. Lipson, [1979] CTC 247, [1979] 1 S.C.R. 833
The shareholders of a company which was incorporated in 1961 to own and operate an apartment building, in 1962 leased the building from the...
Frappier v. The Queen, 76 DTC 6066, [1976] CTC 85 (FCTD)
The taxpayer, who was a licensed investment dealer, made advances to her clients to cover their losses when the brokerage company for which she...
Sunshine Mining Co. v. R., 75 DTC 5126, [1975] C.T.C. 223 (FCTD)
Damages paid by the taxpayer as a consequence of its failure to perform exploration work under an agreement to earn one-half interests in mining...
The Queen v. Clark, 74 DTC 6242, [1974] CTC 305 (FCTD)
A cash-basis farmer purchased cattle from a cattle company at the end of his taxation year on the understanding that the cattle company would...
First Pioneer Petroleums Ltd. v. MNR, 74 DTC 6109, [1974] CTC 108 (FCTD)
Income taxes are not deductible expenses because, "by their very nature the income taxes were incurred because income was gained or produced and...
E.R. Squibb & Sons Ltd. v. MNR, 73 DTC 5139, [1973] CTC 120 (FCTD)
In 1952, the taxpayer purchased 52 acres of land outside Montreal in order to construct its own facilities for use in research, manufacturing and...
Henry v. Minister of National Revenue, 72 DTC 6005, [1972] CTC 33, [1974] S.C.R. 155
The taxpayer was an anaesthetist who supplied his services to a hospital, maintained an office at another location (Douglas Street) in common with...
Olympia Floor & Wall Tile (Quebec) Ltd. v. MNR, 70 DTC 6085, [1970] CTC 99 (FCTD)
Gifts which the taxpayer made to Jewish organizations in the Montreal area in amounts over $100 were accepted to have been made for the purpose of...
British Columbia Power Corporation, Limited v. Minister of National Revenue, 67 DTC 5258, [1967] CTC 406, [1968] S.C.R. 17
The taxpayer incurred various expenses in connection with communicating with its shareholders respecting B.C. legislation under which its shares...
Associated Investors of Canada Ltd. v. MNR, 67 DTC 5096, [1967] CTC 138 (Ex. Ct.)
Before going on to find that the taxpayer was entitled to write off the irrecoverable amount of advances made by it to an employee, Collier J....
Southam Business Publications Ltd. v. MNR, 66 DTC 5215, [1966] CTC 265 (Ex. Ct.), briefly aff'd 67 DTC 5150 (SCC)
Noël J. held that there is no question that an expenditure made by the taxpayer to acquire the Financial Times was made for the purpose of...
Premium Iron Ores Ltd. v. Minister of National Revenue, 66 DTC 5280, [1966] CTC 391, [1966] S.C.R. 685
Before concurring with Martland and Spence JJ. that legal expenses incurred by the taxpayer in connection with challenging potential assessments...
Quemont Mining Corp. Ltd. v. MNR, 66 DTC 5376, [1966] CTC 570 (Ex. Ct.), aff'd 70 DTC 6046 (SCC)
"Duties" payable on a graduated scale under the Quebec Mining Act on the difference between the gross value of mining output and specified...
Seaboard Advertising Co. Ltd. v. MNR, 65 DTC 5188, [1965] CTC 310 (Ex. Ct.)
Unexpired advertising contracts which the taxpayer acquired as part of the purchase of substantially all the business of a competitor were...
MNR v. Eldridge, 64 DTC 5338, [1965] 1 Ex. C.R. 758, [1964] CTC 545
The taxpayer, the operator of an unlawful call girl business, was entitled to deduct the expenses incurred in earning the profits of that business...
MNR v. E.H. Pooler & Co. Ltd., 62 DTC 1321, [1962] CTC 527 (Ex. Ct.)
The taxpayer, which carried on business as a stock broker, was required to pay a fine to the T.S.E. as a result of one of its vice-presidents...
Meteor Homes Ltd. v. MNR, 61 DTC 1001, [1960] CTC 419 (Ex. Ct.)
A payment which one group of shareholders (the "Schoelas") caused the taxpayer to make to another group of shareholders (the "Manasters") was...
Bannerman v. Minister of National Revenue, 59 DTC 1126, [1959] CTC 214, [1959] S.C.R. 562
In discussing the replacement of s. 6(a) in the Income War Tax Act by s. 12(1)(a) of the Income Tax Act, Kerwin C.J. stated (p. 1127):
"In view of...
British Columbia Electric Railway Company Limited v. The Minister of National Revenue, 58 DTC 1022, [1958] CTC 21, [1958] S.C.R. 133, [1958] CTC 20
Before finding that payments made to municipalities in order to secure their acquiescence to the taxpayer's application for permission to...
Royal Trust Co. v. MNR, 57 DTC 1055, [1957] CTC 28 (Ex. Ct.)
It was found that the taxpayer's purpose in paying the admission fees and annual dues of social clubs of which its officers were members "was to...
Montship Lines Ltd. v. MNR, 54 DTC 1151, [1954] CTC 295 (Ex. Ct.), briefly aff'd 55 DTC 1060 (SCC)
Repair expenditures which the taxpayer incurred in accordance with the terms of agreements for the sale by it of two vessels were incurred in...
Imperial Oil Ltd. v. MNR, 3 DTC 1090, [1947] CTC 353, [1946-1948] DTC 1090 (Ex. Ct.)
Due to the negligence of its employees a vessel of the taxpayer caused another company's vessel to sink. A substantial sum which the taxpayer paid...
See Also
Agences Kyoto ltée v. Agence du revenu du Québec, 2023 QCCQ 2921
The ARQ denied the deduction of the full amount of the management fees paid by the taxpayer (AK) to its wholly-owning parent (GAK) on the basis...
Morin v. Agence du revenu du Québec, 2023 QCCQ 2406
Prior to 2002, a pharmacist (“Morin”) carried on directly and through her employees all of the operations of six pharmacies. A services...
Potash Corporation of Saskatchewan Inc. v. The Queen, 2022 TCC 75, aff'd 2024 FCA 35
The taxpayer, which produced and sold potash from mines in Saskatchewan, was subject to a profit tax and to the making of “base payments”...
DiCaita v. The Queen, 2021 TCC 5 (Informal Procedure)
A condo unit, which the taxpayer had been renting-out for many years, was vacated by the current tenant and ceased to be rentable at a reasonable...
Spiegel Sohmer Inc. v. Agence du revenu du Québec, 2021 QCCQ 69
The individual taxpayer (“Raich”), who was a senior tax partner of a Montreal law firm, sought and received reimbursement from the firm’s...
Paletta v. The Queen, 2019 TCC 205, aff'd 2021 FCA 182
A taxpayer used U.S.$82M that had largely been indirectly financed by Twentieth Century Fox to fund, as partner, prints and advertising expenses...
Tournier v. The Queen, 2018 TCC 229 (Informal Procedure)
A retired member of Nova Scotia bar was permitted to deduct $1200 of annual storage fees for client files notwithstanding that her practice had...
Béliveau v. The Queen, 2018 TCC 87
The taxpayer, a self-employed dental surgeon, received benefits totalling over $600,000 under three Great-West policies during a two-year period...
Fonds de solidarité des travailleurs du Québec (F.T.Q) v. The Queen, 2018 TCC 3, aff'd on s. 18(1)(a) grounds 2019 FCA 36
The corporate taxpayer agreed with the City of Chandler that it would no longer use any loan repayment proceeds received by it from a City-owned...
Emballages Starflex Inc. v. Agence du revenu du Québec, 2016 QCCA 1856
The taxpayer requested, at the trial's opening, to amend its pleadings to claim, in the alternative, that donations made by it to U.S. charities,...
Acornwood LLP & Ors v. Revenue and Customs Commissioners, [2016] BTC 517, [2016] UKUT 0361 (Tax and Chancery Chamber)
In the appeal before him by five limited liability partnerships (the “LLPs”) respecting the disallowance of expenditures as trading losses,...
Grenon v. The Queen, 2014 DTC 1207 [at 3805], 2014 TCC 265, aff'd 2016 DTC 5009 [at 6544], 2016 FCA 4
Graham J found that the taxpayer's legal expenses incurred in the course of his separation from his former spouse were not deductible as a...
Emballages Starflex Inc. v. ARC, 2015 QCCQ 7455 (Cour du Québec), see also 2016 QCCA 1856
At the trial's opening, the taxpayer requested an amendment to its pleadings to argue in the alternative that donations made by it to U.S....
Bessette v. ARC (Quebec Revenue Agency), 2014 QCCQ 4329
The dental practice of the taxpayer paid fees of approximately 70% of its revenues to a services company (which was wholly-owned by the dentist...
Michaud v. The Queen, 2014 DTC 1089 [at at 3152], 2014 TCC 83 (Informal Procedure)
Hogan J found that the fact that the taxpayer often took his children along on his prospecting trips did not change that the prospecting...
Garber v. The Queen, 2014 DTC 1045 [at at 2812], 2014 TCC 1
Each taxpayer bought units in a limited partnership, which was to acquire a large yacht to be used for catered vacation charters. However, the...
Harvey v. The Queen, 2013 TCC 298
The taxpayer's teenaged daughter and her friends (all without a driving licence) took the taxpayer's Jeep without his permission and got into an...
Lequier v. The Queen, 2013 DTC 1012 [at at 68], 2012 TCC 380
The taxpayer bought a 10-room inn and lived in it. He started a company ("La Zénon) to operate the inn, which had a restaurant and bar.
Paris J...
Motech Molding Inc. v. The Queen, 2012 DTC 1293 [at at 3913], 2012 TCC 351
The taxpayer held two corporations ("Tesla" and "Orion"), and Tesla Packaging held 55% of the shares of another corporation ("Phoenix"). Tesla...
Chow v. The Queen, 2011 DTC 1196 [at at 1088], 2011 TCC 263
V.A. Miller J. found (at para. 27) that the seizure of approximately $110,000 of proceeds of drug trafficking at the taxpayer's apartment did not...
Big Bad Voodoo Daddy v. The Queen, 2011 DTC 1173 [at at 955], 2011 TCC 226 (Informal Procedure)
The taxpayer was a U.S. limited liability corporation (LLC) which performed jazz concerts in Canada. A CRA appeals officer stated in his...
4145356 Canada Limited v. The Queen, 2011 DTC 1171 [at at 937], 2011 TCC 220
After finding that the taxpayer was entitled under s. 126(2) to a foreign tax credit in respect of its share of US corporate income tax paid by a ...
Bilous v. The Queen, 2011 DTC 1126 [at at 710], 2011 TCC 154
The individual taxpayer was the principal shareholder of the corporate taxpayer, a canola farm supplier with annual sales in the tens of millions....
Bourget v. The Queen, 2011 DTC 1032 [at at 143], 2010 TCC 642 (Informal Procedure)
The taxpayer could not deduct a payment made to the Receiver General in satisfaction of his director's liability for source deductions under s....
Doiron v. The Queen, 2010 DTC 1348 [at at 4325], 2010 TCC 519, aff'd 2012 DTC 5105 [at 7092], 2012 FCA 126
The taxpayer, a lawyer, received a four-year sentence and was suspended from practising law as a result of his conviction for obstruction of...
Labow v. The Queen, 2010 TCC 408, 2010 DTC 1282 [at at 3956], aff'd 2012 DTC 5001 [at 6501], 2011 FCA 305
The taxpayers disguised a tax deferral scheme as a health plan for their employee wives. Bowie J. found that the plans had not been entered into...
Les Entreprises Réjean Goyette inc. v. The Queen, 2009 DTC 1880, 2009 TCC 351
Management fees paid by the taxpayer to an affiliated company which had non-capital losses were non-deductible by it given that the only evidence...
Jolly Farmer Products Inc. v. The Queen, 2008 DTC 4396, 2008 TCC 409
In finding that the taxpayer was entitled to deduct capital cost allowance in respect of houses situated close to the taxpayer's greenhouse...
Mensah v. The Queen, 2008 DTC 4358, 2008 TCC 378
Bowman C.J. noted (at para. 35) that amounts that an employee may have stolen from the till of a delicatessen business would have given rise to...
Anjaria v. The Queen, 2008 DTC 2306, 2007 TCC 746 (Informal Procedure)
V.A. Miller J. stated (at para. 6):
First of all, the forfeiture of the proceeds of crime was not an expense or outlay incurred by the Appellant. ...
ZR v. The Queen, 2007 DTC 1577, 2007 TCC 598
The taxpayer was permitted to deduct as a business loss amounts paid by her in settlement of claims brought by a franchisor against her bankrupt...
Falkener v. The Queen, 2007 DTC 1470, 2007 TCC 514 (Informal Procedure)
The taxpayer was able to deduct costs of maintaining a dog (who helped protect llamas at his farm from danger) and cats (who were useful for...
Ellis v. The Queen, 2007 DTC 996, 2007 TCC 289, aff'd 2008 DTC 6230, 2008 FCA 92
A fee paid by the taxpayer to Ernst & Young LLP for advice in connection with strategizing as to how to monetize his shares through a forward...
Renaud c. La Reine, 2006 DTC 3104, 2006 TCC 354
The taxpayer, who had made a proposal to creditors, was permitted to deduct trustee's fees incurred by him in making the proposal as the proposal...
Wedge v. The Queen, 2005 DTC 1213, 2005 TCC 480
A compensation payment made by the taxpayer to the taxpayer's shareholder, his wife and children, who were employees of the taxpayer, in respect...
Welton v. The Queen, 2005 DTC 869, 2005 TCC 359
A "management fee" paid by the taxpayer, a self-employed real estate agent, to her husband was non-deductible. There was no documentary evidence...
O'Flynn v. The Queen, 2005 DTC 556, 2005 TCC 230 (Informal Procedure)
The taxpayers were able to establish that a dental plan was available to all employees of the corporate taxpayer notwithstanding that only members...
Shaver v. The Queen, 2003 DTC 2112, 2004 TCC 10
Expenses incurred by the taxpayer in taking seven people including him, his wife, and some Amway distributors (only two of whom were sponsored by...
Bains v. The Queen, 2003 DTC 376, 2003 TCC 211
The taxpayer had deliberately permitted a business colleague to mislead an investor ("Bhandar") into thinking that the taxpayer and his colleague...
Costigane v. The Queen, 2003 DTC 254, 2003 TCC 67
The taxpayer, who was a dentist, entered into an arrangement with an off-shore company under which that company would pay him 95% of all invoices...
Foresbec Inc. v. The Queen, 2002 DTC 1786 (TCC), aff'd 2003 DTC 5455, 2002 FCA 186
At the time of the sale of a control block of the taxpayer, it and the purchasing shareholder "granted" to the vendor a consulting contract for...
International Colin Energy Corp. v. The Queen, 2002 DTC 2185, 2002 CanLII 47015 (TCC)
The taxpayer paid a fee to a financial advisor, calculated as 0.7% of the market value of its equity and of the amount of its long-term debt net...
Chamberlain v. The Queen, 2002 DTC 2050, 2003 TCC 307 (Informal Procedure)
The taxpayer's estranged wife obtained a court order to have the taxpayer jailed and, without authorization, took control of the taxpayer's...
Fredette v. The Queen, 2001 DTC 621 (TCC)
A partnership that was owned by the taxpayer and trusts for his children owned (through a second partnership that was owned by the first...
Matt Harris & Son Ltd. v. The Queen, 2001 DTC 28 (TCC) (Informal Procedure)
The taxpayer, the operator of a wood contracting and construction business, was able to deduct the amount of racing expenses incurred by it (less...
Quantetics Corporation v. The Queen, 2000 DTC 2177 (TCC)
A $1.4 million bonus declared by the company and never paid by it was found to have been made pursuant to a legal obligation, with the result that...
Coté v. The Queen, 99 DTC 5215 (FCTD)
A research program supervised by the taxpayer, who was associated with a Montreal hospital, was found to be a business in itself that was intended...
Gagnon v. R., 99 DTC 845, [1999] 4 CTC 2426 (TCC)
Bowman T.C.J. stated (at p. 848):
It was argued at some length that the income earned and expected to be earned by the appellants was income from...
Splend'or Industries Ltd. v. The Queen, 99 DTC 560 (TCC)
The taxpayer was unable to deduct the cost of replacing the roof of premises that were rented to it because such repair was the responsibility of...
SPG International Ltée v. R., [1998] 3 CTC 2046, 98 DTC 1706 (TCC)
The taxpayer, which was a Canadian manufacturer of tool boxes and metal lockers, established an American marketing subsidiary and decided that,...
Robitaille v. The Queen, 97 DTC 346 (TCC)
Lamarre T.C.J. accepted the evidence of the taxpayer (a criminal lawyer) that he used his automobile 80% for business purposes (namely, visiting...
C.I.R. (Hong Kong) v. Cosmotron Manufacturing Co. Ltd., [1997] B.T.C. 465 (P.C.)
After the taxpayer closed its only factory and ceased its business, it made redundancy payments to laid-off employees pursuant to a statutory...
Vodafone Cellular Ltd. v. Shaw, [1997] BTC 247 (C.A.)
The taxpayer, which provided management services to its two subsidiaries which, in turn, ran a cellular phone system and sold cellular telephones,...
Port Colbourne Poultry Ltd. v. R., 97 DTC 237, [1997] 2 CTC 2480 (TCC)
Rowe D.J. found that a fine that the taxpayer agreed to pay as a result in respect of a decision by one of its unsupervised employees to flush...
Sunys Petroleum Inc. v. The Queen, 96 DTC 1759, [1996] 3 CTC 2931 (TCC)
Penalties payable by the taxpayer (which operated gasoline stations) as a result of its failure to remit federal sales and excise taxes on some of...
Ogden Funeral Homes Ltd. v. The Queen, 94 DTC 1405, [1994] 1 CTC 2564 (TCC)
An indirect shareholder of the taxpayer requested his son, the general manager of the taxpayer, to return from Australia to Canada five days prior...
Grunbaum v. The Queen, 94 DTC 1384, [1994] 1 CTC 2687 (TCC)
Expenses incurred by the corporate taxpayer as a result of inviting business guests to a wedding reception held in honour of the daughter of a...
Barclays Mercantile Industrial Finance Ltd. v. Melluish, [1990] BTC 209 (Ch. D.)
In rejecting a finding of special commissioners that agreements for the licensing or other distribution of a film had not been entered into by a...
RTZ Oil and Gas Ltd. v. Elliss, [1987] BTC 359 (Ch. D.)
A consortium of oil companies including the taxpayer installed a manifold, loading lines and buoy over an off-shore oil field under a license that...
Harrowston Corporation v. The Queen, 93 DTC 995, [1993] 2 CTC 2247 (TCC), aff'd 96 DTC 6544 (FCA)
A debt to the taxpayer from a non-resident corporation, which arose because of the taxpayer's inadvertent failure to withhold from interest...
Ginn v. MNR, 92 DTC 2233, [1992] 2 CTC 2579 (TCC)
The taxpayer was unsuccessful in his submission that the sum of $159,347 which he was ordered by the Supreme Court of British Columbia to pay as...
United Color and Chemicals Ltd. v. MNR, 92 DTC 1259, [1992] 1 CTC 2321 (TCC)
Kickback payments made by the taxpayer to purchasing agents employed by its customers were made for the purpose of generating sales and therefore...
ELB Productions Ltd. v. MNR, 91 DTC 1466, [1991] 2 CTC 2661 (TCC)
Before finding that an expenditure by the taxpayer was non-deductible on other grounds, Bowman J. stated (p. 1468):
Risky enterprises sometimes...
Cassidy's Ltd. v. MNR, 89 DTC 686 (TCC)
Losses suffered by a corporation, resulting from a senior vice-president fraudulently having cheques issued to him and charged to cost of goods,...
Heather v. P-E Consulting Group Ltd. (1972), 48 T.C. 293 (CA)
A management consulting company provided money on an annual basis to a trust fund which purchased the company's own shares and shares of a holding...
Horton Steel Works Ltd. v. MNR, 72 DTC 1123, [1972] CTC 2147 (T.R.B.)
The taxpayer was reassessed for unpaid federal sales taxes plus a penalty of 8% per annum. In finding that the penalty was non-deductible, Frost...
Harrods (Buenos Aires) Ltd. v. Taylor-Gooby (1964), 41 T.C. 450 (CA)
The taxpayer was resident in the United Kingdom but carried on the business of a large retail store in Buenos Aires. The taxpayer was liable in...
Morgan v. Tate & Lyle Ltd., [1955] A.C. 21 (H.L.)
Before finding that the taxpayer was permitted to deduct expenses which it incurred in opposing a nationalization of its business that would have...
Canadian Fruit Distributors Ltd. v. MNR, 54 DTC 1145, [1954] CTC 284 (Ex. Ct.)
The taxpayer, which was the subsidiary of a non-profit fruit growers' non-share corporation, and whose business involved the marketing of fruit...
James Snook & Co., Ltd. v. Blasdale (1952), 33 T.C. 244 (CA)
The agreement for the sale of the shares in the capital of the taxpayer provided that the purchaser would cause the taxpayer to pay compensation...
Newsom v. Robertson (1952), 33 T.C. 452 (CA)
A barrister had chambers in London where he carried on his practice but resided at Whipsnade where he maintained a library and worked on...
Fairrie v. Hall (1947), 28 T.C. 200 (K.B.D.)
Damages which a sugar broker paid as a result of maliciously libelling a business rival were non-deductible notwithstanding that successully...
Bassett Enterprises, Ltd. v. Petty (1938), 21 T.C. 730 (K.B.D.)
The purchaser of the shares of a corporation undertook as part of the arrangement that the acquired corporation would pay for the cancellation of...
British Sugar Manufacturers, Ltd. v. Harris (1937), 21 TC 528 (C.A.)
The taxpayer agreed to pay 20% of its net profits to other corporations in consideration for their provision of managerial services and advice on...
Tata Hydro-Electric Agencies, Bombay v. Income Tax Commissioner, [1937] A.C. 685 (P.C.)
In acquiring the business of managing hydro-electric companies from a predecessor corporation, the taxpayer assumed the obligation to pay a...
The Herald and Weekly Times Ltd. v. Federal Commissioner of Taxation (1932), 2 A.T.D. 169 (H.C. of A.)
In finding that damages paid by an Australian newspaper for libel actions were deductible by it, the Court stated (p. 171):
None of the libels or...
B.W. Noble, Ltd. v. Mitchell (1927), 11 TC 372 (CA)
Although the taxpayer, which was an insurance and reinsurance broker, had cause to dismiss one of its directors, and to require him to transfer...
British Insulated and Halsby Cables, Ltd. v. Atherton, [1926] A.C. 205 (HL)
Before going on to find that a substantial lump sum contribution by the taxpayer to an employee pension plan was a non-deductible expenditure,...
C.I.R. v. Alexander Von Glehn & Co. Ltd. (1920), 12 T.C. 233 (CA)
The taxpayer was unable to deduct penalties which it agreed to pay to the Attorney-General as a result of being unable to establish that goods...
Administrative Policy
21 September 2023 External T.I. 2023-0984251E5 - Ransomware attacks and BEC scams
Regarding whether amounts related to ransomware attacks and business email compromise (“BEC”) scams, including ransom payments, payments to a...
13 April 2023 External T.I. 2017-0684341E5 F - Perte au titre d’un placement d’entreprise
Regarding when a mooted small business corporation, which had ceased its restaurant operations in 20X1, but sued the franchisor at the same time...
13 August 2020 External T.I. 2019-0802891E5 F - Unclaimed RRSP Benefits
The estate of the deceased annuitant of an RRSP was fully settled without the executor (his surviving wife and the sole beneficiary) being aware...
26 June 2020 External T.I. 2017-0688121E5 F - Déductibilité des intérêts et pénalités imposées sur les taxes foncières
Can interest paid on property taxes be deducted pursuant to s. 9 in computing business income? CRA responded:
[I]nterest charged on an unpaid...
S4-F14-C1 - Artists and Writers
Examples of deductible expenses of an artist such as specialized wardrobe, lessons and PD and filming and recording costs for performance (but not...
1 August 2019 Internal T.I. 2018-0781951I7 - Employee benefit plan and recharge agreement
Employees of a Canadian subsidiary participated in a performance share plan (“PSP”) under which the non-resident public parent (Parentco)...
27 June 2018 External T.I. 2018-0742881E5 F - Royalties under Canada Petroleum Resources Act
Respecting whether royalties paid under the Canada Petroleum Resources Act ("CPRA") would be considered a tax on income or profit and, therefore,...
26 March 2015 Internal T.I. 2013-0503031I7 F - Existence d’une source de revenu
After finding that the taxpayer’s expenses were likely non-deductible as his activities likely were a hobby rather than a business, CRA went on...
AD-18-01: "Taxable Benefit for the Personal Use of an Aircraft" 17 March 2018
After noting the distinction between personal use of a corporate aircraft qua employee and qua shareholder, CRA stated:
Where the benefit was...
4 March 2015 External T.I. 2014-0562151E5 F - Frais de psychothérapie dépense d'entreprise
In the course of a business of offering psychology services, a psychologist incurs psychotherapy fees in order to reduce such therapist's personal...
9 October 2015 APFF Roundtable Q. 10, 2015-0595671C6 F - Question 10 - Table Ronde APFF 2015
When CRA disallows part of the deduction by a corporation of the management fee charged to it by another (presumably affiliated) corporation...
24 March 2015 External T.I. 2012-0470991E5 F - Mutual fund trust
After noting that in McNeil, 2005 DTC 328, 2005 TCC 124 at para. 6, the Tax Court had indicated that a s. 39(4) election also determined the...
27 June 2014 External T.I. 2013-0500701E5 F - Déductibilité de certaines dépenses
In the course of a general discussion as to deductibility of expenses by a family corporation on redacted facts, CRA stated:
In determining the...
27 May 2014 Internal T.I. 2014-0521631I7 F - Déductibilité d'un alcoomètre
Can an employer deduct expenses related to the installation and monthly recalibration of an alcohol interlock in the vehicle of one of its...
30 October 2013 External T.I. 2013-0500831E5 F - Frais de bureau à domicile
CRA indicated that where a corporation is using an office in its individual shareholder’s home, “for the shareholder to be able to deduct...
2015 Ruling 2013-0513411R3 F - Société de professionnels
Current structure. Mr. A, who carries on a professional practice and employs various individuals directly, holds Class E voting discretionary...
20 November 2012 External T.I. 2012-0466891E5 F - Non-Cash Gifts and Non-Cash Awards
Are gifts and awards to employees deductible to the employer? CRA responded:
The Agency's policy is to allow an employer to give an unlimited...
15 November 2012 Internal T.I. 2012-0459321I7 F - Biens locatifs - frais de déplacement
Can a taxpayer owning two adjacent rental duplexes generating property income deduct the travel expenses incurred to travel from the taxpayer’s...
18 September 2012 External T.I. 2012-0442581E5 F - Fiducie au profit d'un athlète amateur
A world-class amateur athlete (the “Athlete”) deposits qualifying performance income (as defined in s. 143.1(1)) to an athlete trust (the...
S2-F1-C1 - Health and Welfare Trusts
Employer contributions required
1.20 An employer is required to make contributions to a health and welfare trust to fund employee health and...
S4-F2-C1 - Deductibility of Fines and Penalties
1.12 ...[A] fine or penalty incurred in relation to a transaction that is outside the scope of a taxpayer's normal business activities should not...
Provincial income tax
1.24
Paragraph 18(1)(t) does not prohibit the deduction of provincial income tax. However, provincial income tax is not an expense made or...
S3-F9-C1 - Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime
Repayment of stolen property
1.30 Gains from theft or embezzlement as well as cash or property received as a result of extortion, blackmail,...
26 February 2014 External T.I. 2013-0510921E5 F - Remboursement de frais médicaux à un employé
In providing a general response to the question as to whether in computing an employer could deduct, in computing its business income, amounts...
8 October 2013 External T.I. 2011-0428931E5 F - Assurance-invalidité
Facts
As a condition to making a loan to finance the purchase by a corporation of a building, a financial institution required that the...
5 June 2012 External T.I. 2012-0437831E5 - Professional Fees
After stating that "any legal or accounting fees...relating to the filing of a voluntary disclosure are not deductible by the taxpayer under...
5 October 2012 Roundtable, 2012-0451251C6 F - Excess of foreign tax withheld at source
Tax is systematically withheld on income from ADRs at above the maximum rates permitted by the conventions. In addition to finding that such...
21 March 2011 External T.I. 2011-0395011E5 - Deductibility of Ontario SAT
A particular Ontario tax on life insurance corporations ("SAT") is determined as a fixed percentage of the amount by which the corporation's...
24 June 2010 External T.I. 2010-0358981E5 F - Déductibilité de dépistage de la XXXXXXXXXX
Can customers of a testing business deduct the cost of testing for bacteria in computing their income? CRA responded:
[I]it is not necessary to...
8 October 2010 Roundtable, 2010-0378521C6 F - Déduction des primes d'assurance frais généraux
In affirming its policy in IT-233 respecting the deductibility of premiums under an overhead expense insurance policy, CRA stated:
As stated in...
20 August 2009 Internal T.I. 2009-0326941I7 F - Intérêts, Taxe sur le capital, déductibilité
Is provincial capital tax, and interest thereon, deductible in computing income? After observing that “[p]rovincial income tax is not deductible...
10 April 2008 Internal T.I. 2008-0271801I7 F - Frais juridiques liés à amende ou pénalité
Regarding the deductibility of legal fees incurred in defending in court against various fines and penalties, other than those prescribed, the...
16 December 2008 Internal T.I. 2008-0300361I7 F - Déductibilité de l'impôt minimum sur les sociétés
In finding that the Ontario corporate minimum tax ("CMT") provided for in ss. 57.1 to 57.12 of the Corporations Tax Act was not deductible in...
6 November 2007 External T.I. 2007-0227241E5 F - Crédit de taxe sur le capital - moment
After noting that the Quebec capital tax credit was government assistance that reduced the capital cost of the related depreciable property at the...
14 June 2007 External T.I. 2006-0209341E5 F - Utilisation d'un bien d'une société de personnes
A partnership in whose farming business the partners are actively involved owns the residence of one of the partners, who does not pay rent, but...
17 February 2005 External T.I. 2004-0104731E5 - Disability Income Insurance
Premiums paid by a corporation on a policy providing monthly income benefits to a shareholder for loss of his or her self-employment income would...
16 February 2005 Internal T.I. 2004-0105401I7 F - Frais de publicité
A corporation placed advertisements in newspapers in the form of short statements criticizing a redacted matter, and also purchased copies of a...
27 October 2004 External T.I. 2004-0063061E5 F - Provision pour somme payable
Regarding a situation in which a mutual fund trust would covenant to pay a guaranteed rate of return to its beneficiaries, coupled with an...
3 August 2004 Internal T.I. 2004-0078781I7 F - Déduction de l'impôt sur la masse salariale
For a taxpayer referred to in s. 1159.2(e) of the Taxation Act (Quebec), the amount of tax imposed thereunder was 1% of the wages paid in the...
28 April 2004 Internal T.I. 2004-0066991I7 F - Paiement incitatif
In finding that premiums paid by self-employed individuals to acquire exempt life insurance policies on their life (or by a corporation to insure...
8 October 2004 APFF Roundtable Q. 11, 2004-0090791C6 F - Maladies graves et soins de longue durée
Regarding the deductibility of premiums paid by corporations for individual critical illness policies and individual long-term care policies...
13 February 2004 External T.I. 2003-0027361E5 F - Déductibilité des intérêts -TPS et TVQ
Is interest incurred as a result of an assessment of uncollected and unremitted GST and QST amounts, or collected but unremitted GST and QST...
30 January 2004 Internal T.I. 2003-0037191I7 F - Fabrication /sous-traitants/frais de gestion
Individuals performed services only for Cco but (for administrative ease) were paid by a sister of Cco (Bco), so that Bco was responsible for...
19 June 2003 Internal T.I. 2003-0021297 F - LOI SUR L'ACCISE PENALITES INTERETS
Regarding the deductibility of interest and penalties arising under the ITA and ETA, the Directorate indicated:
- Deductibility of the former was...
28 February 2002 Internal T.I. 2001-0097117 F - TPS/TVH SUR UN AVANTAGE IMPOSABLE
Where a corporation uses its employees to earn income from a business or property, can it deduct the GST/HST that it must pay pursuant to ETA s....
8 May 2001 Internal T.I. 2001-0079857 - WORKERS' COMPENSATION PREMIUMS
Workers' compensation premiums paid by a self-employed Alberta individual would be deductible in computing his income given that compensation...
25 February 2004 External T.I. 2003-0042461E5 F - Invalidité d'un actionnaire/admin./employé
A corporation, which is the policyholder and beneficiary of an insurance policy protecting it against the disability of its...
20 November 2003 Internal T.I. 2003-0036237 - DEDUCTIBILITY OF HST ASSESSMENT
GST penalties payable by the taxpayer would be deductible by it given that they were incurred in connection with a profit-making scheme and its...
28 April 2010 External T.I. 2009-0347581E5 F - Frais de formation
When asked whether expenses for attending a convention, seminar, luncheon meeting or other meeting incurred by an individual in the course of...
26 January 2005 Internal T.I. 2004-0101351I7 F - Déduction pour frais juridiques - Alinéa 60o)
The shareholder of an insolvent corporation incurred legal fees in defending against an ARQ sales tax assessment made on the basis that he was...
30 November 2004 External T.I. 2004-0090181E5 F - Assurance maladie grave
A corporation purchases a critical illness insurance policy on the life of its sole shareholder and there is also, at an additional cost, a rider...
2 March 2004 External T.I. 2003-0042631E5 F - Déductibilité de dépenses
Following the death of their father in 2002, three brothers inherited a condominium from their father who, however, had granted his common-law...
10 October 2003 Roundtable, 2003-0035385 F - POLICE D'ASSURANCE CONTRE MALADIE GRAVE
A CCPC is the policyholder of a critical illness policy respecting its sole shareholder where either the shareholder is the beneficiary of the...
3 October 2003 External T.I. 2003-0004575 F - ASSURANCE-INVALIDITE
Regarding where a corporation is the policyholder and beneficiary of a disability insurance policy for an employee-shareholder, CCRA stated:
We...
16 January 2003 Internal T.I. 2002-0177807 - GST PENALTIES&INTEREST DEDUCTIBILITY
Although whether penalties and interest assessed under the Excise Tax Act are deductible is a question of fact, they generally will be deductible....
18 December 2002 Internal T.I. 2002-0164817 F - HONORAIRES POUR SERVICES DE MANDATAIRE
A professional paid his management company for 115% of the costs it purportedly incurred in managing his professional practice. However, the...
10 May 2001 Internal T.I. 2001-0065827 F - FINES + PENALTIES - INTÉRETS ET PÉNALITÉS
Regarding the deductibility of interest and penalties not coming within s. 18(1)(t), CCRA indicated (in its summary) its acceptance of 65302, and...
AD-00-02 8 February 2000 Communiqué to All Audit Divisions Entitled "Take-Over Bid Costs"
6 February 2002 External T.I. 2001-0105605 - Tax Treatment of Transaction Costs
In respect of considering the deductibility of transaction costs incurred by a public corporation ("Pubco") in the course of take-over of it or a...
1 March 2001 External T.I. 2000-0062305 - Stock Option Plan admin fees
The determination of whether fees charged by a foreign parent to a Canadian subsidiary for the participation of its employees in the foreign...
12 February 2001 External T.I. 2000-0056905 F - ALLOCATION POUR FRAIS DE STATIONNEMENT
As a result of a new decree, a construction company was required to pay an allowance of $4 to its employees when working on construction sites...
8 November 1999 External T.I. 9914135 - INTEREST & PENALTY RE MICHIGAN SBT
Penalties in respect of the Michigan single business tax do not meet all the conditions specified in IT-104R2, para. 3 and therefore, unless the...
26 January 1999 External T.I. 9831605 - RRSP MGMT FEES, 20(1)(BB)
Management fees relating to an RRSP that are charged directly to the annuitant will not be deductible even if the annuitant collapses portions of...
10 June 1998 Internal T.I. 9808707 - TRAVEL PROMO AND SALARY EX FOR INVEST CORP
Discussion as to whether salaries of employees of an investment holding company would be deductible.
30 October 1997 External T.I. 9714955 F - POLICE D'ASSURANCE-INVALIDITÉ DÉTENUE PAR UNE SOCIÉTÉ
Revenue Canada indicated that the premiums paid by a corporation, as the policyholder and beneficiary of a disability insurance policy for an...
11 March 1997 Internal T.I. 7-970101
The Manitoba and Ontario mining taxes are incurred only after profits have been earned and are not incurred in the course of earning profits or...
22 October 1996 External T.I. 9629355 - DEDUCTIBILITY OF EMPLOYEE RELOCATION EXPENSES
"In a situation where a corporation requests an employee to relocate and become an employee of its wholly-owned subsidiary, the deductibility of...
27 July 1995 Internal T.I. 9514966 - CAPITAL TAX - RESOURCE PROFITS
Provincial capital tax is considered to be paid for the purpose of gaining a producing income from the business providing [sic] there is no...
10 July 1995 External T.I. 9430445 - PENNSYLVANIA FRANCHISE TAX
The Pennsylvania franchise tax and the Pennsylvania gross receipts tax would be deductible by Canadian trucking companies pursuant to s. 18(1)(a).
10 May 1995 TI (C.T.O "Legal Fees")
If a former husband defaults on his obligation to pay child support and the former wife incurs legal cost in order to enforce their payment, such...
1 September 1994 Internal T.I. 9413847 - DEDUCTIBILITY OF EXPENSES
In response to a situation where a taxpayer was required to pay a settlement to a former tenant in a year in which the taxpayer no longer owned...
4 July 1994 External T.I. 9413325 - RRSP ADMINISTRATION FEE
A frontend load charge made in connection with the purchase of an annuity contract that is an RRSP would not be considered to be a deductible...
15 February 1994 External T.I. 9330465 F - Mortgage Interest Subsidies
Mortgage interest subsidies paid to individuals in their capacity of shareholder will not be deductible under s. 18(1)(a).
93 C.M.TC- Q. 5
The branch-level interest tax imposed on a U.S branch of a Canadian company pursuant to I.R.C. s. 884 (f)(1)(B) is considered to be a deductible...
93 C.P.T.J. - Q.40
Re deductibility of fines, penalties and interest.
28 June 1993 TI (Tax Window, No. 32, p. 10, ¶2604)
The costs of acquiring insurance for the indemnification of a director or officer will be deductible where the amount of the premium is reasonable...
10 June 1993 T.I. (Tax Window, No. 31, p. 24, ¶2550)
The costs to a corporation of a clothing consultant hired for the benefit of certain executives who need to improve their image would be...
4 February 1993 T.I. (Tax Window, No. 29, p. 20, ¶2435)
Premiums paid by a corporation for accidental death and dismemberment insurance policies covering its directors and shareholders will not be...
26 January 1993 TI 923284 (November 1993 Access Letter, p. 512, ¶245-051; Tax Window, No. 28, p. 1, ¶2383), 923284)
Where a profitable corporation provides services at less than fair market value to an affiliated company with losses, s. 18(1)(a) could restrict...
December 1992 B.C. Tax Executives Institute Round Table, Q. 7 (October 1993 Access Letter, p. 479)
An indemnity payment made by one corporation to another as a result of additional Part I.3 taxes or provincial capital taxes payable by the other...
15 December 1992 T.I. (Tax Window, No. 27, p. 18, ¶2334)
Insurance premiums for directors' or officers' insurance should be deductible.
22 April 1992 External T.I. 5-921033
Administration fees paid by the annuitant of an RRSP, in order to be deductible, should relate to the overall direction and management of the...
2 April 1992 External T.I. 5-920818
Fees paid to an RESP trust are not deductible by the subscriber.
2 April 1992 TI (Tax Window, No. 18, p. 23, ¶1869)
Fees paid to a registered education savings plan trust, including enrolment fees, are not deductible by the subscriber because the subscriber is...
13 March 1992 External T.I. 5-920029
Payments to non-members of a credit union may not be deductible under basic income tax rules because they are made after the determination of net...
13 March 1992 External T.I. 5-920029
RC is not prepared to confirm that a payment made by a credit union to non-members is deductible under general principles given that there is some...
6 February 1992 TI 920224 (CTO "XXX and Excise Penalties"; (Tax Window, No. 16, p. 5, ¶1735))
It is doubtful that a penalty under s. 50(4) of the Excise Tax Act (now s. 79(1)) could be said to be incurred to earn income, because the income...
20 January 1992 TI (Tax Window, No. 15, p. 22, ¶1706)
Reasonable administrative fees paid directly to the trustee of an RRSP will be deductible by the annuitant.
31 January 1992 Memorandum (Tax Window, No. 15, p. 16, ¶1678)
B.C. mining taxes are not deductible under s. 18(1)(a) because mining taxes are incurred after the income has been earned.
24 February 1992 Memorandum (Tax Window, No. 13, p. 11, ¶1615)
The fees of a receiver-manager of a corporation that no longer carries on its business will not be deductible by it because they are not incurred...
19 July 1991 T.I. (Tax Window, No. 7, p. 8, ¶1363)
Where a property (such as a Florida condominium) is not acquired by a corporation for the purpose of gaining or producing income (e.g., where the...
2 July 1991 TI (Tax Window, No. 5, p. 21, ¶1327)
Expenses incurred by a shareholder to attend a shareholders' meeting generally are not deductible in computing income from property.
May 1991 T.I. (C.T.O. Fax Service Document No. 96)
Reasonable administration fees paid by an annuitant to the trustee of an RRSP are considered to be deductible expenses in computing income from...
22 March 1991 T.I. (Tax Window, No. 1, p. 7, ¶1164)
GST payable by a partner on an expense incurred by him in respect of the business of the partnership is deductible.
11 May 1990 Memorandum (October 1990 Access Letter, ¶1494)
GST interest is considered in the same light as provincial sales tax interest and is deductible from income. However, statutory penalties are...
17 April 1990 TI (September 1990 Access Letter, ¶1436)
RC will apply s. 9 to the payment of a retiring allowance and allow its deduction at the time the expense was incurred.
29 January 1990 Memorandum (June 1990 Access Letter, ¶1286)
RC considers the Cassidy case to be a precedent.
14 December 89 TI (May 1990 Access Letter, ¶1203)
Ontario employee health tax premiums will be deductible expenses of the employer and will not be a taxable benefit to the employees.
86 C.R. - Q.78
A corporation can deduct the costs of preparing employees' returns, whereas amounts paid to an external accountant for doing so may not be...
84 CR - Q.72
Whether travel-related payments, made by a Canadian employer either to transfer an employee abroad to an affiliate or to return him to Canada,...
81 CR - Q.40
The cost of winding-up a company cannot be said to be laid out to earn income and thus is not deductible either as a current operating expense or...
81 CR - Q.43
In order for a taxpayer to deduct costs of maintaining an office in his home, one or more rooms must be set aside and used solely for the purpose...
81 C.R. - Q.44
Financial counselling fees and fees for tax return preparation incurred by a corporation for the benefit of its shareholder (resulting in the...
79 CR - Q.20
RC is not aware of any instance where the deduction of expenses incurred to obtain a ruling has not been permitted.
IT-104R2 "Deductibility of Fines or Penalties"
IT-185R "Losses from Theft, Defalcation or Embezzlement"
IT-467R "Damages, Settlements and Similar Payments"
Damages paid for wrongful dismissal will normally be deductible.
IT-488R "Winding-up of 90%-Owned Taxable Canadian Corporations"
Cost incurred by a subsidiary in connection with the winding-up are non-deductible because they were not incurred for the purpose of gaining or...
IT-487 "General Limitation on Deduction of Outlays or Expenses"
It is not necessary to show that income actually results from the particular expenditure. It is sufficient that the expense was a part of the...
IT-223 (Cancelled) "Overhead Expense Insurance vs. Income Insurance" 26 May 1975
1. ...[I]ndividuals in business, whose business income is cut off when they are temporarily disabled through illness or accident, sometimes take...
IT-124R5 "Contributions to Registered Retirement Savings Plans"
Reasonable administration fees paid by an annuitant to the trustee of an RRSP are considered to be deductible expenses in computing income from...
IC 77-11 "Sales Tax Reassessments - Deductibility in Computing Income"
The interest element of a sales tax reassessment will be deductible provided that the sales tax amount was itself deductible in computing income....
Articles
Krishna, "What Constitutes a Business?", Canadian Current Tax, June 1995, Vol. 5, No. 9, p. 90.
Fien, "A Directors' Liability and Indemnifications, Section 160 Assessments, and Ordinary Course of Business Provisions", 1992 Conference Report, pp. 53:21-53:26
Discussion of tax treatment of corporate indemnities given to the directors.