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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|---|---|---|
| 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 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...
| 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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|---|---|---|
| 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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|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | sale of photographic equipment and sale or leasing of microfilming equipment part of same business | 104 |
See Also
Klemen v. The Queen, 2014 DTC 1170 [at 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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|---|---|---|
| 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 (HL)
The taxpayers who were a director of a leather manufacturing company and an employee of a spinning firm, purchased a complete cotton spinning...
Gloucester Railway Carriage and Wagon Co., Ltd., [1925] AC 469, [1925] UKHL TC (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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|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | 125 |
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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|---|---|---|
| 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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|---|---|---|
| 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...