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...
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| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | break fee was a capital receipt | 188 |
| Tax Topics - Income Tax Act - Section 54 - Capital Property | break fee was not proceeds of disposition of a capital property | 176 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | break fee was includible under s. 12(1)(x) | 318 |
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...
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(ii) | taxpayer could not allocate most of the purchase price for a mortgage loan to the mortgage viewed as if it were separate from the loan | 297 |
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(1.01) | no loss from a loan when the loan securing it was cancelled but there was no disposition of the debt itself | 207 |
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...
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| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | compensation received by landlord for lease cancellation was on income account | 104 |
Canada v. Haché, 2011 DTC 5089 [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...
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| 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 171 - Subsection 171(1) | impermissible new theory | 45 |
| 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 |
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...
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| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | 136 |
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...
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| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | non-taxable non-compete | 35 |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | 35 | |
| Tax Topics - Statutory Interpretation - Legislative History | 57 | |
| Tax Topics - Statutory Interpretation - Other/Conflicting Statutes | foreign statutory context different | 78 |
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...
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| Tax Topics - Income Tax Act - Section 227 - Subsection 227(4.1) | 75 |
Romkey v. Canada, 2000 DTC 6047 (FCA)
Stone J.A. noted the breadth of the term "property".
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| Tax Topics - Income Tax Act - Section 74.1 - Subsection 74.1(2) | 73 |
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".
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| Tax Topics - General Concepts - Effective Date | 10 | |
| Tax Topics - General Concepts - Substance | 35 | |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) | 266 |
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...
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| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital | 109 | |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | 37 | |
| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition | 150 | |
| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | compensation for loss of business line | 79 |
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....
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| Tax Topics - Income Tax Act - Section 68 | 100 | |
| Tax Topics - Statutory Interpretation - Context | 27 |
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...
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| Tax Topics - Income Tax Act - Section 129 - Subsection 129(4) - Canadian Investment Income | funds employed and risked in the business were used in the business | 167 |
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...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | 87 |
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...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 106 | |
| Tax Topics - Income Tax Act - Section 74.1 - Subsection 74.1(1) | 95 |
The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205 (FCA)
A concept of merchandising replacement muffler systems for automobiles constituted "property".
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| Tax Topics - General Concepts - Onus | failure of Minister to allocate | 57 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | right to buy and resell product not a right to use | 204 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum paid irrespective of user not "royalty" | 143 |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | "including" enlarges | 105 |
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...
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| Tax Topics - General Concepts - Fair Market Value - Shares | deceased's shares valued based on terms of agreement binding the deceased | 169 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 56 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | 106 |
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...
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| Tax Topics - General Concepts - Onus | 54 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | 171 |
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...
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| Tax Topics - General Concepts - Substance | 47 | |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | 121 |
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....
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| 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 171 - Subsection 171(1) | TCC can make a finding of mixed fact and law different from that argued by either party | 47 |
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...
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| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14.1 - Paragraph (a) | goodwill must have a connection to attracting custom | 499 |
| Tax Topics - General Concepts - Fair Market Value - Other | discounted cash flow valuation undervalued resource lands and residual valuation overstated goodwill | 342 |
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...
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| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | s. 160(1) did not apply to a tax debtor providing services free of charge to the NAL transferee of his professional practice | 350 |
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...
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| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | the starting ACB of a partnership interest was determined exclusively under s. 97(2)(b)/ no requirement to issue units | 659 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(1) | s. 97(1) establishes FMV cost for partner's interest | 136 |
Carson v. The Queen, 2014 DTC 1006 [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...
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| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | donated space must constitute an enforceable right in order to be property | 123 |
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...
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| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital | 71 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Leases and Licences | 28 |
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...
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| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | know-how not property | 79 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense | purported transfer of knowhow to corportion did not entail acquisition of property | 98 |
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...
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| Tax Topics - Other Legislation/Constitution - Ontario - Corporations Tax Act - Section 61 | 108 |
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...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Salary or Wages | 37 |
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...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 118 |
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.
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| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Rules - Rule 408(1) | 107 | |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | 101 |
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...
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| Tax Topics - General Concepts - Fair Market Value - Shares | deceased's shares valued based on terms of agreement binding the deceased | 169 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 100 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | 106 |
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...
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| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | variable payments wer for use of knowhow | 125 |
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...
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| Tax Topics - Other Legislation/Constitution - Constitution Act, 1867 - Subsection 92(2) | 157 |
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...
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| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | provision of knowhow in the US to Australian company not carrying on business in Australia | 199 |
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...
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| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Patents and Know-How | 75 |
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...
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| Tax Topics - Income Tax Act - Section 126 - Subsection 126(1) | 121 |
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...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) - Subparagraph 110.6(1.3)(a)(ii) - Clause 110.6(1.3)(a)(ii)(A) - Subclause 110.6(1.3)(a)(ii)(A)(II) | idle forest land could cause a property to not qualify as a qualified farm or fishing property | 252 |
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...
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| Tax Topics - Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss | rental income from the smaller portion of a building not used in manufacturing could be assimilated to active business income | 306 |
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...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.3) | the foreign currency deemed to be disposed of under s. 39(2) by an FX borrower on repaying a USD loan is not identical property to the USDs received by it under a replacement loan | 370 |
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...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Interest in a Family Farm or Fishing Partnership - Paragraph (a) - Subparagraph (a)(i) | a legally non-severable farm that is used both in farming and as a residence is one property for purposes of the s. 110.6 principal-use tests | 314 |
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...
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| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | substantially renovating the personal-use portion of a rental property (without changing floor areas) generally would not engage the change-of-use rules | 243 |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | apportionment of operating expenses of duplex used both personally and for rental income | 165 |
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...
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| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) | cash is property for 55(2.1)(b)(ii)(B) purposes | 138 |
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...
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| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) | gift of encumbered property | 154 |
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...
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| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1.1) | fractional partnership interest qualifies as eligible property | 75 |
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...
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| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6.2) | 78 |
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...
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| Tax Topics - Income Tax Act - Section 45 - Subsection 45(3) | s. 45(3) election not available where 2nd unit in taxpayer-owned duplex changed from rental to personal use | 146 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | s. 45(1)(c) applies where 2nd unit in taxpayer-owned duplex changed from rental to personal use | 150 |
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...
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| Tax Topics - Income Tax Act - Section 89 - Subsection 89(8) | 60 |
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,...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) - Subparagraph 110.6(1.3)(c)(ii) | lands of widow analyzed on a cadastral lot-by-lot basis, so that only those that had been used by deceased husband in farming qualified | 297 |
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...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3) | negative ACB realized pro rata as units are redeemed | 51 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(2) | negative ACB realized pro rata under s. 100(2) as portion of the units are redeemed each year | 201 |
| Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) | all the partner’s units are a single property | 81 |
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...
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| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6.2) | s. 70(6.2) election not available for part of a partnership interest, whereas it is made for particular shares | 131 |
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,...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) | where duplex co-owned by husband and wife, the one unit occupied by them can be designated as a principal residence – but this changes when daughter moves into the 2nd unit | 243 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | gift of a non-exclusive software licence was a gift of property | 105 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | incentive payments received from broker to purchase an exempt life insurance policy were received “in the course of earning income from … property” (the policy) | 166 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | per MacIntyre, life insurance premiums are not deductible from business income | 192 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) | rollover applicable to part interest transferred to surviving spouse | 46 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (f) | damages for infringement of an artist’s moral rights could be proceeds of disposition of a capital property | 91 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) | s. 248(21) could apply to partitioning a share if the corporation could issue fractional shares on the partition satisfying the FMV test, and similarly for partitioning MFT units (viewed as a single property) | 301 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) | partners not permitted to receive divided interest in shares on s. 98(3) wind-up | 116 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(20) | s. 248(20) might apply if a partition results in the issuance of whole shares | 177 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) | sale of preferred and retention of common partnership units entailed part disposition of single property/ different s. 43 allocation methods possible | 111 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Regulation 1102(2) | effective severance for ITA purposes of land and building by Reg. 1102(2) does not apply to personal-use property | 185 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | reclassification of LP units into three classes of alphabet units did not entail a disposition | 183 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | creation of 3 classes of units which tracked the 3 types of partnership property was not a disposition and did not engage s. 97(2) | 218 |
| Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) | all the partner’s units were a single property, so that the disposition of one type of unit engaged s. 43(1) | 229 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Eligible Capital Property | 59 | |
| Tax Topics - Income Tax Act - Section 54 - Capital Property | 59 |
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....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1.1) | pre-patent right included | 27 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Eligible Capital Property | 64 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1.1) | 75 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 34 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1.1) | right to accrued but undeclared dividends was not a separate eligible property from the preferred shares | 148 |
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.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 5 | |
| Tax Topics - Income Tax Act - Section 9 - Timing | 5 |
Wilson, "Tax Treatment of Development, Acquisition, and Transfer of Technology", 1983 Conference Report, pp. 857-867
Discussion of whether know-how is property.