Cases
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...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | damages from contractual breach were deductible | 154 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Damages | deductible damages for breach of non-compete | 112 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss - Damages | damages incurred to keep clients were deductible | 122 |
Urbandale Realty Corp. v. Minister of National Revenue, 97 DTC 5353, [1997] 3 C.T.C. 6 (FCTD)
The taxpayer, which carried on a land development business, deducted for both accounting and income tax purposes a one-time regional development...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(2) | 68 |
Wil Mechanical Ltd. v. The Queen, 90 DTC 6475, [1990] 2 CTC 224 (FCTD)
Although the taxpayer, as the subcontractor on various jobs, withheld 15% from the amounts it paid to the sub-subcontractors until, generally, the...
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| Tax Topics - General Concepts - Evidence | 92 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 83 |
Newfoundland Light & Power Co. Ltd. v. The Queen, 90 DTC 6166, [1990] 1 CTC 229 (FCA)
In computing the amount of maintenance expenses which were deducted by it, the taxpayer included holdbacks which were not payable by it to the...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 111 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 23 |
The Queen v. Burnco Industries Ltd., 84 DTC 6348, [1984] CTC 337 (FCA)
The taxpayer was obligated under an agreement with a municipality to replace earth that it removed in the process of excavating a gravel pit....
The Queen v. V&R Enterprises Ltd., 79 DTC 5399, [1979] CTC 465 (FCTD)
It was found that management of a closely-held company rendered their services on the understanding that their remuneration for the year would be...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement | 97 |
Neonex International Ltd. v. The Queen, 78 DTC 6339, [1978] CTC 485 (FCA)
The taxpayer company, which was in the business of producing custom-made electrical signs, was precluded from deducting costs incurred during a...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | 92 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) | loan prepayment bonus | 111 |
| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | 135 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Foreign Exchange | borrowing to fund proposed acquisition (through Buyco) on capital account | 160 |
Tobias v. The Queen, 78 DTC 6028, [1978] CTC 113 (FCTD)
The taxpayer incurred approximately $106,000 in expenses over an 8-year period in an unsuccessful search for buried pirate treasure. Although he...
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| Tax Topics - General Concepts - Onus | 42 | |
| Tax Topics - General Concepts - Personality | 48 | |
| Tax Topics - General Concepts - Separate Existence | 51 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Reasonable Expectation of Profit | 20 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense | 69 | |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | 20 | |
| Tax Topics - Income Tax Act - Section 67 | high pay-off if unlikely prospect of success was achieved justified the expenditure | 91 |
Frappier v. The Queen, 76 DTC 6066, [1976] CTC 85 (FCTD)
Advances that the taxpayer (a licensed investment dealer) made to her clients to cover their potential losses when the brokerage firm with which...
MNR v. Tower Investment Inc., 72 DTC 6161, [1972] CTC 182 (FCTD)
The taxpayer, which wished to secure tenants for a newly constructed apartment complex deducted the costs of its intensive radio advertising...
Associated Investors of Canada Ltd. v. MNR, 67 DTC 5096, [1967] CTC 138 (Ex. Ct.)
The taxpayer, which was in the business of selling investment certificates to the public, made advances to its commission salesmen that were paid...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 130 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) | write-offs deductible on general principles | 165 |
| Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius | 125 |
See Also
GMAC Leaseco Corporation v. The Queen, 2015 DTC 1141 [at 908], 2015 TCC 146
In 2011, the taxpayer ("GMAC") filed an amended Ontario capital tax return for its calendar 2007 taxation year, which reduced the CCA claimed by...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | amount subject to potential repayment obligation was not received | 258 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.4) | amounts replaced reduced lease income rather than contributing to leased vehicles' cost | 239 |
| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | payments received in consideration for reducing lease payments were compensation for lost lease income, and s. 9 income | 284 |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | surcharges received by lessor at lease termination for excess use were income | 264 |
| Tax Topics - Income Tax Act - Section 9 - Timing | inducement payments received by lessor from manufacturer not income until potential repayment obligation quantified | 221 |
Minin v. The Queen, 2008 DTC 4463, 2008 TCC 429
The taxpayer spent U.S.$70,000 on acquiring the exclusive rights to build a casino in Russia close to the Chinese border and on a feasibility...
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| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | 72 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | 86 |
Toth v. The Queen, 2004 DTC 2192, 2004 TCC 56 (Informal Procedure)
The amount of funds derived by the taxpayer from the operation from an escort agency that were seized by the Quebec government could not be...
Gluecklar Metal Inc. v. The Queen, 2003 DTC 431 (TCC)
A corporate shareholder of the taxpayer had made interest-bearing loans to it and provided administrative services. On occasions during the 1989...
Graham v. R., 97 DTC 1258, [1998] 1 CTC 2333 (TCC)
Expenditures that the taxpayers made in order to obtain an assignment to them of a portion of damage proceeds that might be received by the...
Buck Consultants v. The Queen, 96 DTC 1464, [1996] 3 CTC 2016 (TCC)
The taxpayer, which entered into a 15-year lease of office premises that provided for an initial 14-month rent-free period was not permitted any...
Svidal v. The Queen, [1995] 1 CTC 2692 (TCC)
In stating that the taxpayer, who previously had been required to include in income from a business proceeds of criminal activities, was not...
Gallagher v. Jones, [1993] BTC 310 (CA)
In finding that two leasing companies were not entitled to deduct the full amount of large initial lease payments made pursuant to leasing...
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| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | 164 |
Coles Myer Finance Ltd. v. Federal Commissioner of Taxation, 93 A.T.C. 4214 (H.C.)
Discounts on short-term bankers acceptances and promissory notes drawn or issued by the taxpayer in order to raise money for use in its business...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense | 178 |
Baillargeon v. MNR, 92 DTC 1212, [1991] 2 CTC 2525 (TCC)
Investors in a MURB development paid for a "liquidity guarantee" under which the developer guaranteed that in each of the following five years it...
Murray v. MNR, 91 DTC 1147 (TCC)
In 1979 the taxpayer purchased an interest in a MURB from a promoter, in 1982 defaulted in making payments on a promissory note which he had given...
C.I.R. v. Lo and Lo, [1984] B.T.C. 281 (PC)
Each long-term employee of a law firm was entitled, upon retirement, to a lump-sum payment from the firm roughly equivalent to 1/24 of his annual...
Beauchesne Inc. v. MNR, 75 DTC 119, [1975] CTC 2146 (T.R.B.), rev'd 77 DTC 5308, [1977] CTC 398 (FCTD)
The taxpayer was reassessed in its 1968 taxation year for federal and provincial sales tax which it had failed to pay in respect of its sales in...
Administrative Policy
S3-F9-C1 - Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime
1.38 … In cases where the allowable loss is already reflected in the reported income or loss of a business, the amount of reported income or...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | repayment of embezzlement/losses from theft | 524 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) | bad debt from fraudulent investment scheme | 85 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | 314 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 170 | |
| Tax Topics - Income Tax Act - Section 3 | non-enumerated sources included/hobby receipts, windfalls and true gifts excluded | 1077 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(f) | 306 | |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 220 | |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | voluntary payments | 88 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(c) | 142 |
10 July 1996 Internal T.I. 9618807 - DEDUCTIBILITY OF BORROWING COSTS - MONEY LENDERS
The timing of deduction of debt issue costs and loan origination costs by moneylenders for tax purposes is governed by GAAP, unless the...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) | 58 |
Income Tax Technical News, No. 7, 21 February 1996 (cancelled)
Lease inducement payments made by a landlord on income account with respect to the initial lease of space in a project as well as payments made to...
6 December 1995 External T.I. 9510665 - LEASE INDUCEMENT PAYMENTS
Following the decision in Canderel ([1995] 2 CTC 22), RC is now of the view that inducement payments made to facilitate the re-leasing of property...
1995 TEI Round Table, Q. 34, No. 5M08860HH
"The Department has always taken the position that when a taxpayer makes an expenditure, for the purposes of complying with environmental...
10 February 1993 TI (Tax Window, No. 28, p. 17, ¶2409)
Individual partners are permitted to deduct expenses relating to the business of a partnership that does not have a calendar fiscal period on...
27 July 1992 Letter 9205738 (January - February 1993 Access Letter, p. 10, ¶C9-254)
Given that recent case law in pronouncements of the CICA clarify that matching of expenses with related revenues is required, a limited...
7 February 1992 TI (Tax Window, No. 16, p. 19, ¶1739)
The purchaser of player contracts when acquired as part of the purchase of a sports franchise will normally be able to amortize the cost of the...
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| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | 27 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Contracts | 27 |
18 November 1991 TI (Tax Window, No. 13, p. 12, ¶1596)
The portion of the fee paid for membership in a professional sports league that may reasonably be considered to relate to the acquisition of...
91 CR - Q.29
Re deductibility of unamortized leasehold inducement payments where the property is sold.
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) | 47 |
81 CR - Q.23
A limited partnership may not deduct the expenses incurred, prior to the formation of such limited partnership, by a promoter who later charges...
IT-417R "Prepaid Expenses and Deferred Charges".
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing | 13 | |
| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | 28 |
IT-417R "Prepaid Expenses and Deferred Charges".
Discussion of timing of deduction of prepaid expenses, deferred charges and start-up costs.
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing | 0 | |
| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | 28 |
IT-261R "Prepayments of Rents"
IC 77-11
Although in normal circumstances, sales tax is deductible for income tax purposes in the year in which it is payable, RC will permit the deduction...
Accounting Pronouncements
EIC-52, dated 26 May 1994 "Lessee's Accounting on Re-negotiation of an Operating Lease".
CICA Emerging Issues Committee, EIC-33, November 20, 1991...