Cases
Bernick v. Canada, 2004 DTC 6409, 2004 FCA 191
In finding that the cost to a partnership of bonds acquired by it in consideration for the issuance of units of the partnership was equal to the...
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| Tax Topics - General Concepts - Evidence | foreign law presumed the same | 62 |
| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | accounting method must produce an accurate result | 179 |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 179 |
Trzop v. Canada, 2002 DTC 6728, 2001 FCA 380
The taxpayer and another individual acquired corporate debt with a principal amount of $5 million for a purchase price of $10 as well as acquiring...
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| Tax Topics - General Concepts - Evidence | 74 | |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(4.1) | 94 |
The Queen v. Rumack, 92 DTC 6142, [1992] 1 CTC 57 (FCA)
In noting that the fact that a prize was deemed to have a cost did not imply that the prize necessarily was not income, Hugessen J.A. noted (p....
Bodrug Estate v. The Queen, 90 DTC 6521, [1990] 2 CTC 324 (FCTD), aff'd 91 DTC 5621 (FCA)
An estate paid $1,320,000 to settle an action brought against it by two other persons ("Cohen" and "NIR") for specific performance of an option...
Watkins v. The Queen, 90 DTC 6432, [1990] 2 CTC 205 (FCTD)
The taxpayer unsuccessfully contended that the adjusted cost base of her race horse (which admittedly was personal-use property) included the...
Gaynor v. The Queen, 88 DTC 6394, [1988] 2 CTC 163 (FCTD), aff'd 91 DTC 5288 (FCA)
The cost of some U.S. securities of the taxpayer was determined by reference to the exchange rate at the time of acquisition rather than the...
Wise v. The Queen, 86 DTC 6023, [1986] 1 CTC 169 (FCA)
A deposit of $65,000 was received by the taxpayers from the purchaser of real estate apparently as damages to compensate for losses suffered by...
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| Tax Topics - General Concepts - Onus | 41 |
The Queen v. Stirling, 85 DTC 5199, [1985] 1 CTC 275 (FCA)
The word "cost" in s. 54(a) "means the price that the taxpayer gave up in order to get the asset; it does not include any expense that he may have...
The Queen v. Pollock, 84 DTC 6370, [1984] CTC 353 (FCA)
It was indicated in obiter dicta that if the contention of the Crown were accepted that the taxpayer had realized a taxable capital gain from the...
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| Tax Topics - General Concepts - Stare Decisis | 68 | |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 13 |
See Also
Charron v. Agence du revenu du Québec, 2021 QCCQ 12137
The taxpayers purchased a lot, constructed a house, leased it out for a year and then sold it at a gain. Regarding the computation of the ACB of...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) | all the expenses incurred in relation to a rental home under construction from the building permit to being livable were to be capitalized | 285 |
Lockwood Financial Ltd. v. The Queen, 2020 TCC 128
St-Hilaire J found that the value of shares that a broker (Lockwood) received for its services was to be included in its income when its...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(b) | shares received on a deferred basis from a successor of a client were fee income in the year of entitlement to receive | 497 |
D’Anjou v. The Queen, 2019 TCC 208
In finding that the adjusted cost base of a vacant property that the taxpayer had sold had not been increased by alleged expenses such as...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | the taxpayer should have been informed by a similar loss in the Court of Quebec | 160 |
Devon Canada Corporation v. The Queen, 2018 TCC 170
Two public-company predecessors by amalgamation of the taxpayer made cash payments for the surrender by employees of their options previously...
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| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | payments made to target’s employees for surrendering their options on target’s acquisition were mostly deductible by it | 309 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) - Subparagraph 20(1)(e)(i) | quaere whether “sale” includes a sale to a 3rd party | 177 |
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5.2) | stock option surrender payments of target deductible under s. 111(5.2) | 62 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | disposition of surrendered stock options occurred under doctrine of merger | 318 |
Plains Midstream Canada ULC v. The Queen, 2017 TCC 207, aff'd 2019 FCA 57
The taxpayer (Amoco) assumed a $225M loan that was due in perhaps 43-years’ time and that was effectively non-interest-bearing (as interest was...
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| Tax Topics - Income Tax Act - Section 16 - Subsection 16(1) | s. 16(1) operates symmetrically (no creditor interest – no debtor interest deduction) | 442 |
The Armour Group Limited v. The Queen, 2017 TCC 65, aff'd 2018 FCA 134
An investment company (“Armour”), which was the lessee under a long-term ground lease from the Province of Nova Scotia, had constructed a...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract or Option Cancellation | structuring to deduct most of the cost of land (or a ground leasehold interest therein) was unsuccessful | 565 |
Coast Capital Savings Credit Union v. Canada, 2016 FCA 181
The trustee of RRSPs was duped into purchasing shares of Canadian companies from offshore entities at a price substantially in excess of their...
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| Tax Topics - General Concepts - Sham | deceit of taxpayer was irrelevant to assessment – so that “sham” also was irrelevant | 282 |
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) | rejection of apparent attempt to argue that an inflated purchase price should be bifurcated between a FMV cost and a benefit conferral | 294 |
Turner v. The Queen, 2016 TCC 77 (Informal Procedure)
After finding that a retired professional engineer could not recognize, as a non-capital loss to be carried forward, his losses, including from...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | averaging-down investment in one public company not indicative of business | 180 |
Kokai-Kuun Estate v. The Queen, 2015 TCC 217
The taxpayer purchased 40 acres of vacant land in 1992 for $110,000, and allegedly incurred interest carrying charges of $179,000 up until its...
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| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) | failure to elect | 151 |
Brosamler Estate v. The Queen, 2012 DTC 1193 [at 3493], 2012 TCC 204 (Informal Procedure)
The estate of a deceased German resident sold three rental properties in BC. The estate added probate and legal fees that were paid in...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) | probate fees to establisih title | 138 |
Eskandari v. The Queen, 2007 DTC 1406, 2007 TCC 419 (Informal Procedure)
A fee that the taxpayer paid in connection with acquiring rights of an individual to purchase a condominium, with the taxpayer then acquiring the...
Teleglobe Canada Inc. v. R., 2002 DTC 7517, 2002 FCA 408
In connection with a privatization transaction and at a time that it was still owned by the federal Crown, the taxpayer purchased assets for a...
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| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital | cost of assets purchased with treasury shares was the agreed purchase price being the shares’ stated capital | 238 |
Toronto Refiners & Smelters Ltd. v. The Queen, 2001 DTC 876 (TCC), aff'd 2003 DTC 5002, 2002 FCA 476
The taxpayer agreed to transfer its Toronto property to the City of Toronto with the compensation to be determined (under section 31 of the...
Graphic Packaging Canada Corp. v. The Queen, 2001 DTC 861 (TCC), aff'd 2003 DTC 5007 (FCA)
It was found that the taxpayer had acquired shares of a U.S. corporation ("GGM") on the basis of an undertaking that it would make payments to...
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| Tax Topics - Income Tax Act - Section 54 - Superficial Loss | 93 |
Bow River Pipelines Ltd. v. Canada, 2000 DTC 6090 (FCA)
The taxpayer received a 99.99% limited partnership interest on a rollover basis and then received the resource properties of the partnership in...
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| Tax Topics - Income Tax Act - Section 98 - Subsection 98(1) | partnership deemed to continue until distribution | 186 |
R. v. Inland Revenue Commissioners, Ex Parte Matrix Securities Ltd., [1994] BTC 85 (HL)
The following is a somewhat simplified description of transactions that would have occurred but for the withdrawal by Inland Revenue of an advance...
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| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 28 |
Glass v. MNR, 92 DTC 1759 (TCC)
Following the acquisition by the taxpayer of a mortgage owing by a corporation in financial difficulties, the taxpayer resorted to power of sale...
Ensign Tankers (Leasing) Ltd. v. Stokes, [1992] BTC 110 (HL)
A limited partnership (the "Victory Partnership") of which the taxpayer was a member acquired from a Californian film company ("LPI") rights to a...
Riendeau v. MNR, 85 DTC 665, [1985] 2 CTC 2382 (TCC)
Costs relating to the entertainment and telephoning of stock brokers were costs of acquiring or disposing of the taxpayer's securities.
Stanton v. Drayton Commercial Investment Co. Ltd., [1982] BTC 269, [1982] 2 All E.R. 943 (HL)
Where a taxpayer company satisfies, in accordance with a share purchase agreement, its obligation to pay for the shares it has acquired of a...
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| Tax Topics - General Concepts - Fair Market Value - Shares | 62 |
MNR v. Enjay Chemical Co. Ltd., 71 DTC 5293, [1971] CTC 535 (FCTD)
The forgiveness of trade indebtedness owing by the taxpayer reduced the cost of inventory on hand at that time which it had acquired in the...
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| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | 105 | |
| Tax Topics - Income Tax Act - Section 9 - Forgiveness of Debt | debt forgiveness related to inventory of operations | 186 |
Bentley v. Pike (1981), 53 TC 590 (Ch. D.)
A resident of the United Kingdom (Mrs. Bentley) in 1967 inherited an interest in German property having a value of DM 132,780, and in 1973 sold...
Craddock v. Zevo Finance Co. Ltd. (1946), 27 TC 267 (HL)
A private investment dealing company, whose securities had declined substantially in value, transferred the more speculative of those securities...
Administrative Policy
27 June 2024 External T.I. 2023-1000391E5 - BC Secondary Suite Incentive Program
The BC Secondary Suite Incentive Program assists qualifying homeowners to create a new secondary suite or accessory dwelling unit (a “Secondary...
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| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | rental program requiring rent at no more than an affordability limit could correspond with a source of income | 185 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | application of s. 13(7.1) or 53(2)(k), and exclusion of s. 12(1)(x), re BC government forgivable loan for construction of secondary suite | 153 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) - Subparagraph 45(1)(c)(ii) | conversion of part of home to a secondary suite for rental would engage s. 45(1)(c)(ii) | 135 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | s. 45(2) would permit claiming principal residence exemption for disposition of secondary suite rather than balance of home | 396 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | principal residence could be claimed for secondary rental suite subject to s. 45(2) election, or balance of home, but not both | 353 |
2021 Ruling 2021-0911211R3 - Foreign Takeover
Background
Opco, a taxable Canadian corporation and a subsidiary of another corporation, held all the shares of a non-resident subsidiary...
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| Tax Topics - Income Tax Act - Section 84 - Subsection 84(1) - Paragraph 84(1)(b) | permitted increase in PUC of shares of subsidiary to which a contribution of shares was made, equal to those shares’ FMV | 111 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (k) - Subparagraph (k)(ii) | deposit of shares to voting trust arrangement was not a disposition | 40 |
| Tax Topics - General Concepts - Payment & Receipt | borrowing and payment of funds pursuant to an internal payment direction agreement | 49 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) | full cost to sub of shares contributed to it | 289 |
7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 10, 2022-0938301C6 F - Rebate on purchase of GIC
Normally, on the purchase by a client of a GIC of a bank, the bank would receive the face amount of the GIC (say, $21,000) and pay a broker a...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | broker’s waiver of commission could be an inducement payment | 196 |
21 June 2021 External T.I. 2019-0815871E5 F - 83(2)b) and cost
Regarding the determination of the cost of a promissory note issued in full and absolute payment of a capital dividend, the correspondent...
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| Tax Topics - Income Tax Act - Section 52 - Subsection 52(1) | s. 52(1) is unnecessary to establishing full cost for a note transferred in satisfaction of a capital dividend | 108 |
2017 Ruling 2017-0699201R3 - Cross-border Butterfly
CRA ruled on a cross-border butterfly which entailed assets of the “Transferred Business” being transferred indirectly to a wholly-owned...
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| Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution | cross-border butterfly with 4-party exchange and preceding distribution of DC to foreign parent to qualify as permitted exchange/rental property valued at nil/post-butterfly equaling cash payment | 1140 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Permitted Exchange - Paragraph (b) | cross-border butterfly including preliminary transfer of DC to foreing parent to come within “permitted exchange” | 444 |
| Tax Topics - Income Tax Act - Section 143.3 - Subsection 143.3(3) | s. 143.3(3) inapplicable on a 4-party exchange | 234 |
| Tax Topics - Income Tax Act - Section 212.1 - Subsection 212.1(1.1) - Paragraph 212.1(1.1)(b) | application on 4-party exchange | 291 |
14 March 2016 Internal T.I. 2015-0609671I7 - Earnout, Amalgamation, Cost of Shares and ECE
A Canadian Acquisitionco acquired Canadian Targetco for a cash base price plus earnout obligations, and then immediately merged with Targetco...
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| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | post-amalgamation earnout payment could be applied to increase an s. 88(1)(d) bump of capital property (but not ECP) of the amalgamated target | 317 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | payments made by Amalco in satisfaction of earnout obligation for acquisition of one precedessor by the other were not ECE | 224 |
| Tax Topics - General Concepts - Purpose/Intention | attribution of predecessor's intention to Amalco | 140 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) | position on interest deductibility following target amalgamation is based on policy and ITA scheme rather than technical | 350 |
22 March 2016 Internal T.I. 2013-0506561I7 - Property acquired on a return of capital
CRA considered that property contributed for no consideration to a corporation by its shareholder, or received by a Canadian corporate shareholder...
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| Tax Topics - Income Tax Act - Section 69 - Subsection 69(4) | FMV cost of property acquired on QROC distribution | 121 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) | FMV cost of property acquired on contribution of capital | 121 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | QROC distribution by a foreign affiliate to its Canadian shareholder of ECP results in ECE to the shareholder of the property’s FMV | 220 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable A - Variable A.1 | no gain to FA transferor of ECP | 99 |
Memorandum 8-3 - "Calculating Input Tax Credits"
Soft costs included in ACB (para. 62)
Under section 54 of the Income Tax Act, the capital cost (or adjusted cost base) of capital property is...
10 June 2013 STEP Round Table Q. 10, 2013 0480411C6 (Brosamler decision)
CRA considers Brosamler Estate to be confined to "a very specific fact situation," noting that the legal and probate fees in issue would have been...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) | 75 |
11 October 2013 APFF Roundtable Q. 18, 2013-0495851C6 F - Safe income adjustments
Buyco acquired all the shares of Opco on 15 January 2010 from Sellco. A CRA audit resulted in a 2011 reasessment to increase Opco's income for its...
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| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) | CRA post-closing reassessment of Target's pre-closing income changes its SIOH | 398 |
20 March 2013 External T.I. 2012-0442571E5 F - Coût d'acquisition d'un terrain
A developer acquired Land 1 from a Canadian-controlled private corporation (the “Corporation”) in exchange for cash and for land which the...
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| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | cost of water and sewer lines connecting mobile home units, included in Class 8 | 86 |
15 November 2012 External T.I. 2012-0461291E5 F - Frais judiciaires pour clarifier une servitude
The taxpayer incurred legal expenses in connection with a Superior Court action which defeated a claim of adjoining landowners that they had a...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) | costs of preventing an expanded easement on land were not a disposition expense | 265 |
25 September 2012 Internal T.I. 2011-0409281I7 F - Papier commercial - Obligations XXXXXXXXXX
The corporate taxpayer, which was a portfolio manager, suspended transactions involving asset-backed commercial paper (ABCP) of its clients during...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | compensating clients for half their loss was currently deducible, whereas purchasing securities at original cost was its cost | 158 |
17 October 2012 Ruling 2010-0376681R3 - Internal reorganization - 55(3)(a)
Before issuing favourable rulings, the letter notes that:
The purpose of two separate transfers of the PX 1 shares (one before the amalgamation...
3 May 2010 Internal T.I. 2010-0359631I7 F - Dépenses liées à une résidence non habitée
After finding that property expenses (property taxes, maintenance and insurance) incurred on an inherited property could not be added to its ACB...
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| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(h) | ACB addition for property taxes inapplicable where a building on the property | 185 |
20 November 2009 External T.I. 2009-0332351E5 F - Crédit d'impôt pour la rénovation domiciliaire
CRA indicated that “the amount of qualifying expenditures eligible for the HRTC includes GST and QST.”
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| Tax Topics - Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Expenditure | expenditure can come out of money that had already been set aside | 63 |
6 January 2009 Internal T.I. 2008-0301721I7 F - Frais judiciaires et droit de propriété
Survey costs incurred to remedy problems in the acquisition of land that was to be used in a business whose operations were to recommence were...
6 October 2006 Roundtable, 2006-0197031C6 F - Obligation achetée à prime
An individual acquired a bond, bearing interest at 7% and with a face value of $100, for investment purposes in the secondary market for $124. ...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(9.1) | purchase of bond at a premium does not engage s. 12(9.1) | 152 |
| Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(1) - Paragraph 7000(1)(b) | bond that was purchased at a premium is not a Reg. 7000(1)(b) obligation | 57 |
31 May 2004 External T.I. 2004-0069681E5 F - Adjusted Cost Base of Real Property
Although Mr. B made a legacy of his residence to Mr. A, his surviving widow (Ms. B) remained in the residence and Mr. B's children contested the...
24 February 2004 External T.I. 2003-0044931E5 - Assumption of "high rate" debt
Where a purchaser of land assumed an existing debt with a penalty payable in the event of early termination, the adjusted cost base to it of the...
14 January 2004 External T.I. 2003-0026011E5 F - Contrat à terme sur indice boursier
Regarding whether unrealized gains or losses on stock index futures contracts should be taken into account in determining the "cost amount" of a...
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| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) | foreign currency "variable margin" accounts held by registered plans with dealers are foreign property | 104 |
9 January 2004 External T.I. 2003-0047341E5 F - Coût indiqué - Biens étrangers
A registered pension plan receives an in-kind distribution of shares from one of the mutual funds it holds, and contributes such shares to two...
2 December 2003 External T.I. 2003-0048585 - Cost of Property Acquired for Shares
"Where an asset is acquired by a corporation in exchange for shares of the corporation issued from treasury as a result of a transaction between...
13 November 2003 Internal T.I. 2003-0039637 F - perte sur creance et frais
The taxpayer disposed of shares to an arm’s length purchaser for proceeds payable in instalments, which the purchaser defaulted in paying. The...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(a) | capital loss under s. 50(1)(a) if deferred proceeds became uncollectible | 81 |
5 March 2003 External T.I. 2002-015145
Costs incurred by a purchaser in the course of a successful take-over of another corporation will be capital expenditures that should be added to...
11 June 2002 External T.I. 2001-0104075 F - DEDOMMAGEMENT
In order to build a manufacturing plant on a site, a corporation had ground preparation work carried out on the site by a third party but then was...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | damages award not recognized until appeal thereof heard | 63 |
26 April 2002 Internal T.I. 2002-0129707 F - FRAIS D'OUVERTURE DE COMPTE
An administrative fee paid by a shareholder on becoming an accountholder would be a capital expense that was an addition to the ACB of the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Oversight or Investment Management | admin fee on becoming a holder of shares that were not a source of property income was a non-deductible capital expenditure and ACB addition | 56 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) | admin fee for shares that generate only capital gains cannot be deducted under s. 20(1)(bb) | 55 |
12 April 2002 External T.I. 2002-0122495 F - PRIME PAYEE SUR OBLIGATION
Regarding bonds acquired at a premium, CCRA stated:
If a taxpayer acquires an interest-bearing obligation at a premium and the taxpayer's...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Debt/ receivables | short holding time to maturity does not preclude a bond from being capital property | 103 |
| Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(1) - Paragraph 7000(1)(b) | determination of Reg. 7000(1)(b) proportions made on a taxpayer-specific basis | 110 |
5 March 2002 Internal T.I. 2001-0102757 F - PERTE FINALE
In order to enlarge the parking lot on its existing rental property and improve the visibility of the existing buildings, the taxpayer acquired an...
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| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | a rental building that was acquired with a view to then moving it off the subjacent land and then selling it, was not a depreciable property | 145 |
14 June 2001 External T.I. 2000-0044935 F - Coût des actions
The requisite number of shareholders of Opco (a private corporation) agreed, at a time that the Pubco shares were trading for $2 per share, to...
16 May 2001 External T.I. 2000-0053145 F - BIEN ETRANGER MEME JOUR VENTE/ACHAT
Would the cost amount of an investment in an RRSP increase if the RRSP sells and buys the same security on the same day? CCRA noted that “[t]he...
26 April 2001 Internal T.I. 2000-0046367 F - DEBENTURES CONVERTIBLES
The corporation issued exchangeable debentures whose principal was exchangeable into a specified number of Class A shares whose price for such...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) | shares issued on conversion of debenture for their stated capital (equal to debenture face amount) rather than higher FMV, so that they were not repaid at a premium | 160 |
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital | stated capital of shares issued determined in board’s discretion and may be less than their FMV | 230 |
12 February 1997 External T.I. 9631575 - INTERACTION OF SECTIONS 51 AND 116
After finding that an exchange by non-resident pursuant to s. 51(1) of his common shares (which were taxable Canadian property) of a Canadian...
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| Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) | s. 51(1) does not deem the issuer not to have acquired the exchanged share | 97 |
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) | s. 116(5) is applicable to issuer if s. 51(1) exchange of TCP | 201 |
21 November 1997 External T.I. 9727985 - COST BASIS - FOREIGN TRIANGULAR AMALGAMATION
Redetermination of the cost of the shares of a foreign corporation held by a Canadian parent as a result of a triangular amalgamation of...
3 October 1994 External T.I. 9424115 - EPSP FORFEITURES
A contingent right to have shares vested in a beneficiary of an employee profit sharing plan would not generally have any cost since that right is...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 33 |
93 C.P.T.J. - Q.29
Although the definition of ACB does not preclude property other than capital property from having an ACB, transactions involving inventory or...
15 October 1991 T.I. (Tax Window, No. 11, p. 8, ¶1525)
Capital sums received by a corporation in respect of damage to its land by drilling or exploring for oil and natural gas pursuant to a lease were...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(2.1) | 33 |
22 August 1991 T.I. (Tax Window, No. 8, p. 11, ¶1407)
The fees of a committee for an incompetent may be included in the ACB or the cost of disposition of the investments to the extent reasonably...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(b) | 39 |
6 June 1991 Memorandum (Tax Window, No. 4, p. 22, ¶1283)
An account rendered to an owner of property for work completed by a contractor represents an amount which has been incurred by the owner and...
13 May 1991 T.I. (Tax Window, No. 3, p. 25, ¶1230)
The fact that the individual vendor of the share receives a deemed dividend under s. 84.1(1) does not reduce the cost of the shares to the...
5 March 1990 T.I. (August 1990 Access Letter, ¶1383)
Where an NRO ceases to be such by virtue of one of its shareholders becoming resident in Canada, the capital gain to the former NRO from the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 133 - Subsection 133(1) | 13 | |
| Tax Topics - Income Tax Act - Section 48 - Subsection 48(3) | 51 |
29 Aug. 89 Inter-Office Memo (Jan. 90 Access Letter, ¶1089)
Holdco owns two operating companies, Opco 1 and Opco 2, sells Opco 1 to a third party and at the same time Holdco and Opco 2 give the third party...
89 C.P.T.J. - Q11
The cost to a purchaser of a gas property in carrying out the assumed take-or-pay obligation in respect of the property will represent part of its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) | 51 |
87 C.R. - Q.42
Where a taxpayer has acquired an asset and the allowance given for a trade-in of the used asset exceeds its fair market value at the time of the...
84 C.R. - Q.63
RC does not regard a "hedge cost" or "hedge premium" as a separate item, but instead takes it into account at the time of contract fulfillment.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Foreign Exchange | 34 |
IT-153R3 "Land Developers - Subdivision and Development Costs and Carrying Charges on Land"
Costs directly attributable to the development of land inventory, for example, legal, consulting, mortgage and survey fees, are added to the cost...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(1) | 119 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(2) | 0 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(3) - Land | 0 |