Cases
Glencore Canada Corporation v. Canada, 2024 FCA 3
An integrated nickel-mining public company (“Falconbridge”), entered into merger agreements with a more junior public company (“Diamond...
Leonard v. Canada, 2022 FCA 195
The taxpayer acquired, from a US bank, a mortgage loan of a US debtor who was in default, for a purchase price of around $1.3 million. Two years...
Spezzano v. Canada, 2007 DTC 5580, 2007 FCA 294
In affirming that a lump sum payment received by the taxpayer from the sole tenant of its building in consideration for the termination of the...
Canada v. Haché, 2011 DTC 5089 [at at 5848], 2011 FCA 104
The taxpayer voluntarily surrendered two commercial fishing licences under a government program in exchange for a payment. The Court of Appeal...
Rezek v. Canada, 2005 DTC 5373, 2005 FCA 227
A "spread" (under which the taxpayer would purchase a convertible debenture, a convertible preferred share or a warrant and short sell the...
Slobodrian v. Canada (Minister of National Revenue), 2003 DTC 5632, 2003 FCA 350
Before going on to find that a "gift" of services did not qualify as a gift of property, Noël J.A. stated (at p. 5634) that in Manrell, the Court...
Manrell v. Canada, 2003 DTC 5225, 2003 FCA 128
A portion of the consideration paid by a purchaser of shares of operating companies in which the taxpayer had been a significant shareholder...
Royal Bank of Canada v. Tuxedo Transport Ltd., 2000 DTC 6501 (BCCA)
In reversing a finding of the chambers judge below, the Court found that his interpretation effectively added words of limitation to the word...
La Capitale, Compagnie d'Assurance Générale v. Canada, 98 DTC 6428 (FCA)
Létourneau J.A. found that the right to an indemnity that effectively was being provided by a general insurer to its clients represented property...
Vaillancourt v. The Queen, 91 DTC 5352 (FCTD)
In light of the broad definition of "property", the taxpayer was found to have "property that is a multiple-unit residential building" by virtue...
Shaw v. The Queen, 89 DTC 5194, [1989] 1 CTC 386 (FCTD), aff'd 93 DTC 5213 (FCA)
Rent payable for the use and enjoyment of property and a lease stipulating payment of the same were both "property".
Pe Ben Industries Co. Ltd. v. The Queen, 88 DTC 6347, [1988] 2 CTC 120 (FCTD)
In finding that a payment made by Northern Alberta Railway ("NAR") to the taxpayer as compensation to the taxpayer for the termination by NAR of a...
The Queen v. Golden et al., 86 DTC 6138, [1986] 1 CTC 274, [1986] 1 S.C.R. 209
Estey, J. found that the interpretation of the initial version of s. 68 should be interpreted in light of the broad meaning of "property," in s....
The Queen v. Marsh & McLennan, Ltd., 83 DTC 5180, [1983] CTC 231 (FCA)
Notwithstanding the terms of a contract between the taxpayer and an insurance company, funds received by the taxpayer from clients were treated by...
The Queen v. Burgess, 81 DTC 5192, [1981] CTC 258 (FCTD)
Although maintenance granted pursuant to s. 11 of the Divorce Act "is not property in the proper sense of that term", it falls within the broad...
Murphy v. The Queen, 80 DTC 6314, [1980] CTC 386 (FCTD)
It was held that when the plaintiff gave up a vested right to 1/2 the income of an estate in exchange for being included in a class of...
The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205 (FCA)
A concept of merchandising replacement muffler systems for automobiles constituted "property".
Rapistan Canada Ltd. v. MNR, 74 DTC 6426, [1974] CTC 495, briefly aff'd 76 DTC 6177, [1976] CTC 296 (SCC)
The American parent or affiliate of the taxpayer purported to grant know-how to the taxpayer by deed of gift. The taxpayer was not entitled to...
Beament et al. v. Minister of National Revenue, 70 DTC 6130, [1970] CTC 193, [1970] S.C.R. 680
In finding, in his concurring reasons for judgment, that the contractual right of beneficiaries of an estate to enforce an agreement for the...
Quality Chekd Dairy Products Association v. MNR, 67 DTC 5303, [1967] CTC 452 (Ex Ct)
The taxpayer, which was a U.S.-resident corporative association of dairy companies, received a fee from a Canadian member that was, in part, a...
Huston v. MNR, 61 DTC 1233, [1961] CTC 414 (Ex.Ct.)
An award which the taxpayers received in 1958 from the War Claims Commissioner as compensation for the confiscation of their Czechoslovakian...
Industrial Development Bank v. Valley Dairy Ltd., 53 DTC 1027, [1953] CTC 132 (Ont. S.C.)
S.112(6) of the Act as it read effective prior to July 1, 1950 provided that the liability of a taxpayer for amounts withheld by him "constituted...
See Also
Canadian Imperial Bank of Commerce v. Canada, 2023 FCA 195
A subsidiary ("PC Bank") of Loblaw had agreed with CIBC for CIBC to provide retail banking services under Loblaw’s President's Choice trademark....
Commissioner of State Revenue v Placer Dome Inc., [2018] HCA 59
In the context of discussion the extent to which a gold mining company should have significant separate value assigned to goodwill, Gageler J...
Aitchison Professional Corporation v. The Queen, 2018 TCC 131
At a time that a lawyer (“James”) owed $2.1 million in taxes, he transferred his law practice to a professional corporation and thereafter...
Iberville Developments Limited v. The Queen, 2018 TCC 102, aff'd 2020 FCA 115
Before going on to indicate (at para. 54) that issuing additional units on the drop-down of property under s. 97(2) into a partnership would not...
Carson v. The Queen, 2014 DTC 1006 [at at 2520], 2013 TCC 353 (Informal Procedure)
The taxpayer and his wife allowed a charity to use two rooms of their house for free (an office and a storage room), and claimed charitable...
Winsor v. The Queen, 2008 DTC 2116, 2007 TCC 692
Before going on to find that fishing licences of the taxpayer were capital property, so that an amount received by the taxpayer from the federal...
Roth v. The Queen, 2005 DTC 1570, 2005 TCC 484, aff'd 2007 DTC 5222, 2007 FCA 38
Before going on to find that a purported transfer of an undeveloped project by the taxpayer to a corporation as reflected in a journal entry...
QEW 427 Dodge Chrysler (1991) Inc. v. Minister of Revenue (2000), 49 OR (3d) 776 (S CT J), aff'd (2002), 50 OR (3d) 460 (S Ct J, Div Ct), 2002 DTC 7228
Chrysler Canada would sell cars to the taxpayer (an automobile dealer) under conditional sales contracts, and sell the conditional sales contracts...
Marzetti v. Marzetti (1994), 26 C.B.R. (3d) 161, [1994] 2 S.C.R. 765
A bankrupt's interest in a post-bankruptcy income tax refund was "property" for purposes of the Bankruptcy Act notwithstanding that the refund did...
Canadian Imperial Bank of Commerce v. Hallahan (1990), 48 BLR 113 (Ont CA)
A milk quota under the Milk Act (Ontario) was not property, and its transfer accordingly could not be challenged under the Fraudulent Conveyances...
Drummond v. Smith (1988), 18 R.F.L. (3d) 120 (Alta. Q.B.)
The word "property" in the Matrimonial Property Act (Alberta) (a term which is not specifically defined) does not include university degrees and...
Re National Trust Co. and Bouckhurst (1987), 61 OR (2d) 640 (C.A.)
A licence to produce tobacco was not property. "The notion of 'property' imports the right to exclude others from the enjoyment of, interference...
Kirby v. Thorn EMI plc, [1987] DTC 462 (CA)
A lump sum which the taxpayer (a British holding company) received as consideration for a non-competition agreement given by it to the U.S....
O'Brien v. Benson's Hosiery (Holdings) Ltd. (1979), 53 TC 241 (HL)
A payment of £50,000 by an employee to his employer in consideration of his employer releasing him of all obligations under the employment...
Manitoba Fisheries Ltd. v. The Queen, [1979] 1 S.C.R. 101.
The granting by the Crown to a crown corporation of a commercial monopoly in the export of fish from Manitoba, which had the effect of putting the...
The Queen v. Littler, 78 DTC 6179, [1978] CTC 235 (FCA)
The sale of property at a price that is less than its value does not result in a transfer of "property" to the purchaser.
Minister of Revenue (Ontario) v. McCreath, [1976] CTC 178, [1977] 1 S.C.R. 2
The settlor of a trust delivered voting trust certificates to the trustee on terms that the income of the trust fund was to be paid during the...
Beament et al. v. Minister of National Revenue, 70 DTC 6130, [1970] CTC 193, [1970] S.C.R. 680
Pigeon J.,in his concurring judgment, indicated that the right of children in an agreement between them and the deceased to require a corporation...
Technical Tape Corp. v. MNR, 64 DTC 428 (TAB)
Variable payments made by the taxpayer for the use by it of know-how provided by a U.S. corporation were subject to withholding tax as being "for...
Minister of National Revenue v. Fitzgerald, [1949] CTC 101, [1949] S.C.R. 453 (SCC)
A testator (A) domiciled and resident in British Columbia, who died in 1921, bequeathed his property to his surviving wife (B), with the assets of...
Federal Commissioner of Taxation v. United Aircraft Corp. (1943), 7 A.T.D. 318 (HC)
Licence fees to be earned by an American company for the communication of know-how to an Australian licensee did not represent income from a...
Musker v. English Electric Co. Ltd., 41 TC 556 (HL)
Lord Radcliffe stated (p. 585):
"There is no property right in 'know-how' that can be transferred, even in the limited sense that there is a...
Nokes v. Doncaster Amalgamated Collieries Ltd., [1940] A.C. 1014 (HL)
It was held that where a court order was made under the Companies Act 1929, for the amalgamation of two corporations, including an order for the...
Curtis Brown, Ltd. v. Jarvis (1929), 14 TC 744 (K.B.D.)
Rowlatt J., before going on to find that U.K. income tax should have been deducted from the payment of royalties to non-resident authors on the...
Administrative Policy
13 June 2023 External T.I. 2021-0891701E5 - Property used principally in a farming business
Can the “used principally” requirement in s. 110.6(1.3)(a)(ii)(A)(II) (potentially relevant for the property qualifying as a “qualified farm...
7 October 2022 APFF Roundtable Q. 12, 2022-0950691C6 F - Revenu de location - DPE
A CCPC (ABC Inc.) owns a building, 65% of which is used in its manufacturing business, and the remaining 35% is leased to a third party. CRA...
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 10, 2017-0705201C6 F - Capital loss - repayment of loan
A U.S.-dollar loan owing to an affiliated trust is repaid on its maturity, thereby resulting in an s. 39(2) FX loss to the borrower. The trust...
6 October 2017 APFF Roundtable Q. 16, 2017-0709161C6 F - Résidence principale sur une terre agricole
A husband and wife equally own a partnership which for some time has been holding land which as to 80% was used in the farming business and as to...
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.4, 2016-0674831C6 F - Changement d'usage - duplex
Before going on to find that the change-of-use rules should be applied to a duplex on a global basis, CRA stated:
[A]n immovable is normally...
29 November 2016 CTF Roundtable Q. 8, 2016-0671501C6 - 55(2) clause 55(2.1)(b)(ii)(B)
In finding that cash is property for purposes of s. 55(2.1)(b), CRA stated:
Property is defined in subsection 248(1) as including money, unless a...
3 March 2015 External T.I. 2014-0519981E5 F - Donation avec charge / Gift with a charge
Before considering the treatment under ss. 69(1)(b)(ii) and s. 69(1)(c) of a gift of a real estate property that is charged with a hypothec, CRA...
6 October 2014 External T.I. 2014-0543751E5 F - Rollover of a part of an interest in a partnership
CRA stated "an interest in a partnership held by a taxpayer [is] a single property, regardless of the composition of that interest," but then...
20 January 2014 External T.I. 2013-0503871E5 F - Vente d'une érablière
Would a maple syrup production quota allocated to a maple sugar bush by an authority be considered property for tax purposes. After referencing...
12 June 2012 STEP CRA Roundtable, 2012-0442921C6 - STEP CRA Roundtable - June 2012 Q.9
A s. 70(6) election cannot be made in respect of a fractional interest in a property For these purposes each share of a corporation, and all of...
21 February 2012 External T.I. 2011-0417471E5 F - Changement d'usage - paragraphe 45(3)
A taxpayer inhabited as a principal residence a unit of a taxpayer-owned duplex and integrates that unit, through major renovations, with the...
19 January 2011 External T.I. 2010-0390831E5 - Compute LRIP - corporation becomes non-CCPC
A future income tax asset is not "property" within the meaning of variable A of s. 89(8) as it does not represent a "right" - unless the...
12 January 2011 Internal T.I. 2010-0375801I7 F - Bien agricole admissible détenu avant 1987
Before finding that Quebec lands that had been devised to a widow by her farmer husband, who used only part of the lands in his farming business,...
8 October 2010 Roundtable, 2010-0373461C6 F - Retrait d'une société de personnes
Before going on to find that there was a pro rata recognition of capital gain when 20% of a partner’s units were redeemed, CRA stated that "all...
11 July 2007 External T.I. 2006-0206391E5 F - Choix du paragraphe 70(6.2) - société de personnes
A deceased person held an interest in a family farm partnership. In the course of finding that the executor could not elect to have s. 70(6) apply...
11 May 2007 External T.I. 2006-0214351E5 F - Transfert d'un droit de propriété
CRA applied the statement in IT-120R6, para. 3, that a unit in a duplex is a property that can be designated as a taxpayer's principal residence,...
15 March 2005 Internal T.I. 2004-0108721I7 F - Don d'une licence
In connection with finding that a gift of a non-exclusive software licence was a gift of property, CRA stated:
In Manrell, the Court went on to...
28 April 2004 Internal T.I. 2004-0066991I7 F - Paiement incitatif
As an incentive for the sale of exempt life insurance policies (having a savings and investment component) a life insurance brokers would pay to...
27 January 2004 External T.I. 2003-0006025 F - Roulement d'une partie d'un bien
Where part of an immovable was distributed to the spouse of the deceased, and the other interests in the immovable were distributed to the...
10 April 2003 Internal T.I. 2002-0177767 F - INDEMNITE RECUE PAR UN ARTISTE
An artist recovered damages pursuant to s. 34(2) of the Copyright Act for the infringement of his moral rights respecting the partial destruction...
28 October 2002 External T.I. 2002-0134785 F - Partitioning of Shares
A partnership, holding mutual fund trust (MFT) units, was dissolved such that each CCPC received a pro rata undivided interest in each such...
13 August 2002 External T.I. 2002-0121295 F - PBR DES PARTS PRIVILEGIEES
Regarding an individual who sold his preferred units, but retained his common units, in a partnership, CCRA indicated that it regarded him as...
2 May 2002 Internal T.I. 2002-0122607 F - BIENS A USAGE PERSONNEL
On the disposition by an individual of a cottage which is a personal-use property (“PUP”) but not his principal residence, he realizes a...
24 April 2002 External T.I. 2001-0111185 F - DISPOSITION PARTIELLE D'UNE PARTICIPATION
Ms. A is one of the three limited partners in a limited partnership (the "LP"). Her 33 units entitle her to 1/3 of the value of the shares, 3/4 of...
23 February 2001 External T.I. 2001-0066265 F - Salaire différé français
Before finding that receipt of “deferred salary,” pursuant to a right established by French legislation, as compensation for contribution to...
1998 A.P.F.F. Round Table, Q. 14, No. 9824750
Know-how is not property. Accordingly, although the know-how relating to a business may be part of the goodwill that is transferred on an...
27 April 1998 External T.I. 9800145 - non-competion agreements, client lists
A lump-sum payment received by the individual shareholder of a corporation upon a sale by that corporation of one of its business divisions and in...
23 September 1996 External T.I. 5-962304
The rights of a person to obtain a patent in respect of know-how represent property and, accordingly, can qualify as an eligible property under s....
8 November 1995 Internal T.I. 9525077 - NON-COMPETITION PAYMENTS
In considering the treatment of payments received by a shareholder pursuant to a non-competition agreement, the Department stated:
"Property is...
24 April 1995 External T.I. 9429505 - MILK QUOTA
A milk quota represents a "right" of the individual farmer to produce and market milk and, therefore, represents "property" and an "eligible...
28 March 1995 Internal T.I. 9502507 - RIGHT TO ROYALTY ELIGIBLE PROPERTY
RC cited Evans v. MNR, 60 DTC 1047, [1960] S.C.R. 391 and Asamera Oil (Indonesia) Ltd.,73 DTC 5274 (FCTD) after stating that "a right to receive...
3 October 1994 External T.I. 9424115 - EPSP FORFEITURES
A contingent right to receive shares under an employee profit sharing plan would be a capital property the disposition of which to give rise to a...
1 September 1994 External T.I. 9413775 - ELIGIBLE PROPERTY & CUM DIVIDENDS
In finding that the right to accrued but undeclared dividends was not a separate eligible property from the preferred shares on which they had...
24 March 1992 T.I. (920203 (March 1993 Access Letter, p. 76, ¶C109-126; Tax Window, No. 18, p. 24, ¶1827)
A particular covenant that is a restriction against land and which runs with the land and is binding on the landlord and his successors in title,...
81 C.R. - Q.86
notwithstanding Rapistan, RC will consider know-how that is of a capital nature as being "eligible capital property" for purposes of the Act.
Articles
Douglas S. Ewens, Michael J. Flatters, "Toward a more Coherent Theory of Dispositions", 1995 Canadian Tax Journal, Vol. 43, No. 5, p. 1377
Discussion of the realization principle.
Wilson, "Tax Treatment of Development, Acquisition, and Transfer of Technology", 1983 Conference Report, pp. 857-867
Discussion of whether know-how is property.