Machinery and Equipment

Cases

Atlantic Packaging Products Ltd. v. Canada, 2020 FCA 75

The taxpayer, a paper products manufacturer, engaged in a hybrid transaction in which it sold some of the assets of its “Tissue Division”...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54.2 transfer of assets representing 68% of the FMV of the assets of a business division did not satisfy the “substantially all” test 223
Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 27 - Subsection 27(1.3) raising of new issue would prejudice the Crown 222

C.A.E. Inc. v. Canada, 2013 DTC 5084 [at 5944], 2013 FCA 92

The taxpayer leased or entered into leases by it of flight simulators it had manufactured. For financing reasons, it entered into sale and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property characterization of depreciable property or inventory done on annual basis 371
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) change in use on depreciable property conversion to inventory 124
Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) applied to conversion of depreciable property into inventory 184
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(b) 370

General Construction Co. Ltd. v. Minister of National Revenue, 59 DTC 1169, [1959] CTC 300, [1959] S.C.R. 729

A construction company ("Mannix") had formed a joint venture (the "first joint venture") with two other arm's length companies to contruct a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Compensation Payments payment received on buyout of JV interest found to be compensation in lieu of future profits 140

Canadian Kodak Sales Ltd. v. MNR, 54 DTC 1194, [1954] CTC 375 (Ex Ct)

The taxpayer, whose business was to purchase photographic equipment from affiliates and sell them to customers, in 1940 acquired the business of...

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See Also

Klemen v. The Queen, 2014 DTC 1170 [at 3613], 2014 TCC 244

The taxpayer directly or through corporations acquired equipment to refurbish and rent to junior oil companies. He reported a capital gain on his...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Commercial Activity equipment licensed at no charge was held in commercial activity 86
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) s. 165(5) cannot be used to increase an assessment 161
Tax Topics - Income Tax Act - Section 165 - Subsection 165(5) s. 165(5) cannot be used to increase an assessment 161

Edwards v. Bairstow & Harrison, (1955), 36 TC 207, [1955] UKHL TC_36_207 (HL)

The taxpayers who were a director of a leather manufacturing company and an employee of a spinning firm, purchased a complete cotton spinning...

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Gloucester Railway Carriage and Wagon Co., Ltd., [1925] AC 469, [1925] UKHL TC_12_720 (HL)

The taxpayer manufactured railway wagons, which it sold outright (outright or under hire purchase agreements) as well as letting out wagons on...

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Administrative Policy

2020 Ruling 2019-0834901R3 - Loss Utilization - Depreciable Property

Transactions

With a view to Profitco, which is an indirect wholly-owned Canadian subsidiary of a non-resident public company (“Parent”),...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) s. 55(3)(a) application to deemed dividend arising on superficial gain transaction to utilize losses of Lossco 203
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) superficial gain transaction to transfer losses to a Profitco that is related through a non-resident parent 195

25 September 2007 Internal T.I. 2007-0226751I7 F - Gain en capital versus revenu d'entreprise

The corporation’s regular activities involved the purchase of particular (redacted) types of equipment or vehicles that were damaged and/or...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(b) property regular refurbished for leasing then resale at a gain was inventory 165

Articles

Carl MacArthur, "Is the Sale of Depreciable Property Capital or Income in Canada?", Tax Notes International, 14 May 2012 (an abridged version of this article appears as "CAE Inc.: Depreciable Property or Inventory?", Canadian Tax Highlights, Vol 20, No. 3, March 2012, p. 6)

The conversion of depreciable property to inventory before a disposition thereof is not contemplated under the Act's CCA scheme, and could give...

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