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 248 - Subsection 248(1) - Property | break fee was not consideration for the disposition of a merger right as there was no such “right” | 215 |
| 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 |
Johnson v. The Queen, 2012 DTC 1022 [at at 2604], 2011 TCC 540, rev'd 2013 DTC 5004 [5515], 2012 FCA 253
The taxpayer realized gains of $1.3 million from periodically placing funds with a rogue ("Lech") who, it was later discovered, had not invested...
Goff Construction Limited v. Canada, 2009 DTC 5755, 2009 FCA 60
The taxpayer incurred expenses in obtaining a reversal of most of the costs that the Ontario Municipal Board had awarded against it. These...
Spezzano v. Canada, 2007 DTC 5580, 2007 FCA 294
There was no reviewable error in the finding of C. Miller J below that a lump sum payment received by the taxpayer from the sole tenant of its...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | lease was part of building, not a separate capital asset | 91 |
T. Eaton Co. v. R., 99 DTC 5178, [1999] 2 CTC 380 (FCA)
The taxpayer, a Canadian retail merchant, entered into a long-term lease of retail space in a shopping centre in 1955. The lease included a...
Ikea Ltd. v. Canada, 98 DTC 6092, [1998] 1 S.C.R. 196, [1998] 2 C.T.C. 61
A tenant inducement payment which the taxpayer (a furniture retailer) became entitled to receive as a result of entering into a lease of premises,...
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| Tax Topics - Income Tax Act - Section 9 - Timing | no conditions attached to use of receipt | 47 |
| Tax Topics - Statutory Interpretation - Symmetry | 28 |
Prince Rupert Hotel (1957) Ltd. v. The Queen, 93 DTC 5243, [1993] 1 CTC 427 (FCTD), aff'd 95 DTC 5227 (FCA)
Damages which the taxpayer received as a general partner in two limited partnerships from a law firm for negligence in drafting the partnership...
The Queen v. Mohawk Oil Co. Ltd., 92 DTC 6135, [1992] 1 CTC 195 (FCA)
A lump sum of U.S. $6 million which the taxpayer received from a U.S. supplier in settlement of a claim for loss of profits and unrecovered costs...
Charles R. Bell Ltd. v. The Queen, 90 DTC 6516, [1990] 2 CTC 333 (FCTD), aff'd 92 DTC 6472 (FCA)
The dealer network of the taxpayer distributed the outboard motor products of Outboard Marine Corporation of Canada Limited ("OMC"), along with...
Pacific Northern Gas Ltd. v. The Queen, 90 DTC 6252, [1990] 1 CTC 380 (FCTD), aff'd 91 DTC 5287 (FCA)
The Consumers' Gas case was followed on a similar set of facts.
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| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 2 | 95 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | 95 |
Schofield Oil Ltd. v. The Queen, 89 DTC 5128, [1989] 1 CTC 310 (FCTD), aff'd 92 DTC 6022 (FCA)
A payment of $1.3 million which the taxpayer received from Imperial Oil as compensation for the termination of a contract for the sale of waste...
Westar Mining Ltd. v. The Queen, 88 DTC 6505, [1988] 2 CTC 349 (FCTD)
Proceeds of a business interruption insurance policy clearly were income.
St.-Romuald Construction Ltée v. The Queen, 88 DTC 6405, [1988] 2 CTC 324 (FCTD)
$227,000 which the taxpayer, a construction contractor, received on the termination of its contract was held to be an income receipt in light of:...
C.N.R. v. MNR, 88 DTC 6340, [1988] 2 CTC 111 (FCTD)
The termination of a major contract for the intermodal shipping of 250,000 tons of goods and materials over a five year term from Edmonton to the...
Pe Ben Industries Co. Ltd. v. The Queen, 88 DTC 6347, [1988] 2 CTC 120 (FCTD)
The termination by Northern Alberta Railway of its subcontract with the taxpayer for the trucking of equipment and materials from a railway yard...
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| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital | 109 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | contractual right was a property right or chose in action | 93 |
| 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 |
Consumers' Gas Co. Ltd. v. The Queen, 86 DTC 6132, [1986] 1 CTC 380 (FCTD), aff'd 87 DTC 5008, [1987] 1 CTC 79 (FCA)
The taxpayer, which derived most of its revenue from a natural gas distribution business, was frequently obliged to relocate segments of its...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | 34 |
Brussels Steel Corp. v. The Queen, 86 DTC 6077, [1986] 1 CTC 180 (FCTD)
The taxpayer received $429,000, net of legal costs, in settlement of its action against a supplier of graded reinforcing steel rods for breach of...
Societe d'Ingenierie Cartier Limitee v. The Queen, 86 DTC 6025, [1986] 1 CTC 166 (FCTD)
An amount of $560,650 paid to a professional engineering firm in settlement of its action against a client for unpaid professional fees was an...
The Queen v. Manley, 85 DTC 5150, [1985] 1 CTC 186 (FCA)
When an individual ("Levy") failed to honour his agreement, purportedly made on behalf of shareholders of Levy Industries Ltd., to pay the...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | minimal-effort finder's fee | 72 |
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | 69 | |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 80 |
Cominco Ltd. v. The Queen, 84 DTC 6535, [1984] CTC 548 (FCTD)
It was accepted that business interruption insurance proceeds constituted income to a zinc refiner.
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| Tax Topics - Income Tax Act - Section 65 | 42 | |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 48 |
Zygocki v. The Queen, 84 DTC 6283, [1984] CTC 280 (FCTD)
The taxpayer received $190,712 in return for waiving her rights under a judgment granting her (along with others) the right to require a company...
Consumers' Gas Company Ltd. v. The Queen, 82 DTC 6300, [1982] CTC 339 (FCTD), aff'd, 84 DTC 6058, [1984] CTC 83 (FCA)
Payments received from both government and private sources to compensate for the cost of relocating pipelines were capital receipts because the...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) | 33 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property | no disposition of abandoned gas mains | 38 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost not reduced by reimbursement right therefor | 134 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | 37 |
Cox v. The Queen, 82 DTC 6287, [1982] CTC 322 (FCTD)
The executors of an estate, who were sued by the taxpayer in an action whose main chance of success rested on a quantum meruit claim of the...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 55 |
Packer Floor Covering Ltd. v. The Queen, 82 DTC 6027, [1981] CTC 506 (FCTD)
An amount received by the taxpayer in settlement of an action against one of its carpet suppliers for wrongful termination of their...
City Parking Ltd. v. City of Toronto (1980), 20 L.C.R. 159 (Ont. Div. Ct.)
Compensation paid to a parking-lot operator, under the heading of "damages attributable to disturbance" in s. 13(2)(b) of the Expropriations Act...
Seaforth Plastics Ltd. v. The Queen, 79 DTC 5174, [1979] CTC 241 (FCTD)
Insurance proceeds from business interruption coverage received by the taxpayer following the destruction of its premises by fire were revenue...
Cirella v. The Queen, 77 DTC 5442, [1978] CTC 1 (FCTD)
Special damages awarded to an employee for loss of income over the period of time prior to judgment resulting from the impairment of his earnings...
MNR v. Import Motors Ltd., 73 DTC 5530, [1973] CTC 719 (FCTD)
A Volkswagen dealer, which also was the exclusive distributor of Volkswagen products in Newfoundland, was found to have received twelve monthly...
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| Tax Topics - General Concepts - Substance | 92 |
H.A. Roberts Limited v. Minister of National Revenue, 69 DTC 5249, [1969] CTC 369, [1969] S.C.R. 719
The taxpayer, which carried on various real estate related businesses, was found to conduct an operation of collecting mortgage payments as agent...
Monart Corp. v. MNR, 67 DTC 5181, [1967] CTC 263 (Ex Ct)
One of the tenants of the taxpayer's office building advised the taxpayer that the tenant's obligations under its lease would be assumed by the...
Parsons & Steiner v. MNR, 62 DTC 1148 (Ex Ct)
Compensation received by the taxpayer, which carried on the business of a manufacturer's agent and wholesale merchant in china and related wares,...
Grader v. MNR, 62 DTC 1070, [1962] CTC 128 (Ex Ct)
Halfway through a five-year lease of a movie theatre from the taxpayer, the tenant agreed to pay the taxpayer a "rental" of $600 per month for the...
General Construction Co. Ltd. v. Minister of National Revenue, 59 DTC 1169, [1959] CTC 300, [1959] S.C.R. 729
Shortly before the completion of a joint venture relating to the construction of a portion of a pipeline, the taxpayer, rather than agreeing to...
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| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment | 252 |
Donald Hart Ltd. v. MNR, 59 DTC 1134, [1959] CTC 268 (Ex Ct)
Damages received by the taxpayer pursuant to a court action brought by it against a company incorporated by a former executive of the taxpayer for...
MNR v. Farb Investments Ltd., 59 DTC 1058, [1959] CTC 113 (Ex Ct)
The taxpayer previously had been leasing a property to a related individual ("Farb") who was operating a service station and a car-washing...
See Also
Tourigny v. Agence du revenu du Québec, 2024 QCCQ 1914
The taxpayer (“Trac-World”) carried on its business through a warehouse, which was destroyed by fire. It sued the local municipality for...
Sommets du Mont-Tremblant Inc. v. Agence du revenu du Québec, 2023 QCCQ 9061
The taxpayer (“Les Sommets”), which had received $400,000 for granting an option to a third party to acquire various properties, later...
Glencore Canada Corporation v. The Queen, 2021 TCC 63, aff'd on different grounds 2024 FCA 3
An integrated nickel-mining public company (“Falconbridge” – a predecessor of the taxpayer), entered into merger agreements with a more...
Victoria Power Networks Pty Ltd v Commissioner of Taxation, [2019] FCA 77
Australian electricity distributors were entitled to require their customers to pay an amount equal to the estimated net economic burden to the...
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| Tax Topics - Income Tax Act - Section 9 - Nature of Income | a calculated reduction in the amount of a rebate required to be paid by a taxpayer was not income to it | 325 |
Béliveau v. The Queen, 2018 TCC 87
The taxpayer, a self-employed dental surgeon, received benefits totalling over $600,000 under three Great-West policies during a two-year period...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | premiums under policies to cover business expenses in the event of illness were fully deductible | 105 |
Scott v. The Queen, 2017 TCC 224
In 1980, Nortel had established a health and welfare trust (the “HWT”) for its employees. Following its insolvency and filing under the CCAA...
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| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 89 - Subsection 89(1) - Paragraph 89(1)(a) | trust return not admitted at trial opening where no previous notice and not relied upon by CRA | 229 |
| Tax Topics - Income Tax Act - 101-110 - Section 107.1 - Paragraph 107.1(a) | s. 107.1(a) in effect produced a rollover on cash distribution of mooted benefits | 181 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | a distribution from a health and welfare trust to compensate for lost insurance coverage was not a taxable benefit as it did not come within s. 6(4) | 316 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(iii) | payment made as compensation for termination of monthly death benefits was paid, at the least, in lieu of a death benefit | 249 |
| Tax Topics - General Concepts - Stare Decisis | Supreme Court obiter accorded deference | 153 |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | termination payment that did not come within s. 6(4) should be treated as excluded from s. 6(1)(a) | 153 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(4) | lump sum received as compensation for no longer benefiting from contributions to a group life insurance policy did not come within the terms of s. 6(4) | 334 |
GMAC Leaseco Corporation v. The Queen, 2015 DTC 1141 [at at 908], 2015 TCC 146
Leases by the taxpayer ("GMAC") to GM dealership customers stipulated a "residual value" at which the customer could purchase the vehicle at lease...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | amount subject to potential repayment obligation was not received | 258 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.4) | amounts replaced reduced lease income rather than contributing to leased vehicles' cost | 239 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing | capital tax accrued from day to day | 226 |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | surcharges received by lessor at lease termination for excess use were income | 264 |
| Tax Topics - Income Tax Act - Section 9 - Timing | inducement payments received by lessor from manufacturer not income until potential repayment obligation quantified | 221 |
Henco Industries Limited v. The Queen, 2014 DTC 1161 [at at 3528], 2014 TCC 192
A subdivision property of the taxpayer, a developer, was blockaded by Six Nations protesters. To diffuse the conflict, the Ontario government...
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| Tax Topics - General Concepts - Evidence | parol evidence rule not applying to surrounding evidence/press releases admitted | 239 |
| Tax Topics - General Concepts - Fair Market Value - Land | deference to taxpayer's figure within appraiser's range of values | 111 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | compensation received in course of business but not in course of earning income | 192 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital | payment to withdraw from business was not an eligible capital amount | 146 |
| Tax Topics - Income Tax Act - Section 23 - Subsection 23(1) | land ceased to be inventory through sterilization rather than business cessation | 184 |
| Tax Topics - Income Tax Act - Section 3 | compensation payment for destroyed business was non-taxable | 171 |
Howard v. Commissioner of Taxation, [2014] HCA 21
The taxpayer and four others formed a joint venture to acquire, lease and sell a golf course. The taxpayer attempted to have a corporation of...
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| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | damages not received as constructive trustee as not received qua director | 191 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) | agreement assigned rights to proceeds of law suit rather than entitlement under law suit | 344 |
| Tax Topics - Income Tax Act - Section 9 - Nature of Income | agreement assigned rights to proceeds of law suit rather than entitlement under law suit | 344 |
River Hills Ranch Ltd. v. The Queen, 2013 DTC 1200 [at at 1064], 2013 TCC 248
A pharmaceutical corporation ("Weyth") had collection agreements with the taxpayers for their on-going collection of pregnant mare urine ("PMU")...
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| Tax Topics - General Concepts - Evidence | 133 |
Alberta Power (2000) Ltd. v. The Queen, 2009 DTC 1514, 2009 TCC 412
On the early termination of a power purchase agreement between the taxpayer and the Alberta government, the taxpayer received $59.7 million from...
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| Tax Topics - General Concepts - Ownership | person with the benefits and burdens of ownership was the beneficial owner | 243 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | definition of "reimbursement;" exclusion for legal obligation from legitimate negotiations | 220 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 56 |
RCI Environnement Inc.(Centres de Transbordement et de Valorisation Nord-Sud Inc.) v. The Queen, 2008 DTC 4982, 2007 TCC 647, aff'd , 2009 DTC 5940, 2008 FCA 419
A lump-sum payment received by the taxpayer in consideration for the cancellation of a non-compete covenant that had previously been given to it...
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| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | no prejudice to taxpayer in amending pleadings | 77 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | negotiated damages received for breach a non-compete were in respect of the disposition (i.e., cancellation) of the non-compete | 231 |
Bourgault Industries Ltd. v. The Queen, 2006 DTC 3420, 2006 TCC 449, briefly aff'd 2008 DTC 6007, 2007 FCA 373
A judge of the Federal Court determined that a competitor of the taxpayer had infringed the taxpayer's patents, but did not deal with the...
Bueti v. The Queen, 2006 DTC 3047, 2006 TCC 320, aff'd sub nomine Spezzano v. The Queen, 2007 DTC 5580, 2007 FCA 294
A lump sum payment received by the taxpayers, following negotiation, with the sole tenant of their building, was an income receipt given that the...
BP Canada Energy Resources Co. v. The Queen, 2002 DTC 2110 (TCC)
The taxpayer, which was a Canadian natural gas producer, received a lump sum as compensation for the losses it was considered to have suffered as...
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| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition | 141 |
Coughlan v. The Queen, 2001 DTC 719 (TCC)
General damages which the taxpayer received in an action against a corporation of which he had been an officer and shareholder were exempt capital...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | damages not reimbursements | 121 |
R. Reusse Construction Co. v. R., 99 DTC 823, [1999] 2 CTC 2928 (TCC)
A lump sum received by the taxpayer (which owned an office tower) from its anchor tenant following the termination by the anchor tenant of the...
C.I.R. v. McGuckian, [1997] BTC 343 (HL)
On 23 November 1979, the trustee who owned shares of a private company ("Ballinamore") assigned to a UK company the right to any dividend payable...
Deeny & Ors v. Gooda Walker Ltd., [1995] BTC 470 (CA)
Damages received by Lloyd's names pursuant to their action against agents (who were member's agents) for their failure to exercise reasonable...
IBM Canada Ltd. v. MNR, 93 DTC 1266 (TCC)
Lease inducement payments received by the taxpayer were taxable to it given that they were found not to have been intended as reimbursements for...
Trans Canada Glass Ltd. v. MNR, 93 DTC 1260, [1993] 2 CTC 2941 (TCC)
A cash incentive of $400,000 which a company engaged in the wholesale auto glass business successfully obtained as an inducement for entering into...
Young v. The Queen, 92 DTC 2387, [1993] 1 CTC 2015 (TCC)
The taxpayer had the right to receive $40,000 per annum for life (with certain survivor rights) from Col. Sanders Kentucky Fried Chicken Ltd....
Nesbitt Thomson Inc. v. MNR, 91 DTC 1113, [1991] 2 CTC 2352 (TCC)
Lease inducement payments received by a holding company in connection with obtaining leases of office space which it, in turn, would provide to...
Yesac Creative Foods Inc. v. MNR, 91 DTC 413, [1991] 2 CTC 2622 (TCC)
The taxpayer, which regularly franchised restaurants, was found to have received on income account fixturing allowances which it received in...
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| Tax Topics - Income Tax Act - Section 9 - Timing | 48 |
Donald Fisher (Ealing) Ltd. v. Spencer, [1989] BTC 112 (C.A.)
£14,000 which the taxpayer received as damages from an agent for his negligence in failing to give a timely notice under a rent adjustment...
Poulter v. Gayjon Processes Ltd., [1985] BTC 112 (HC)
Wage subsidies paid by the Department of Employment to a shoe manufacturer were taxable.
Rolfe v. Nagel, [1980] TR 257 (HC)
An arguably gratuitous payment received by a diamond merchant broker was compensation for past unremunerated work or for loss of anticipated...
London & Thames Haven Oil Wharves, Ltd. v. Attwooll (1966), 43 TC 491 (CA)
The taxpayer, which operated an oil storage installation that was supplied by tankers, suffered damage to a jetty through the negligent handling...
Cartwright and Sons Ltd. v. MNR, 61 DTC 499 (TAB)
The taxpayer, which was a publisher of The Canadian Law List, settled its copyright infringement action against another company ("Carswell's") on...
Keir & Cawder, Ltd. v. C.I.R. (1958), 38 TC 23 (C.S. (1st Div.))
The taxpayer, whose main activity was carrying on the trade of quarrymasters, sought to extend its business to civil engineering contracting by...
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| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) | 88 |
No. 148 v. MNR, 54 DTC 125 (ITAB)
The taxpayer received a lump sum from the tenant in consideration for releasing the tenant from its obligation to restore the leased premises (to...
William's Executors v. C.I.R. (1943), 26 TC 23 (C.A.), aff'd (HL)
In finding that a company received insurance proceeds for the accidental death of a valuable employee on revenue account, Lord Greene, M.R. stated...
Vaughan v. Archie Parnell and Alfred Zeitlin, Ltd. (1940), 23 TC 505 (K.B.D.)
The taxpayer carrying on business as a theatrical agent and producer of plays, acquired the scenery, properties and costumes to a play for...
Smart v. Lincolnshire Sugar Co., Ltd. (1937), 20 TC 643 (HL)
The taxpayer, which already was entitled to receive annual subsidies in respect of every hundredweight of sugar or molasses manufactured during...
Administrative Policy
3 September 2014 External T.I. 2014-0523861E5 F - Clause pénale
CRA stated that whether the surrogatum principle would apply to amounts received under a penalty clause contained in a commercial lease could not...
23 June 2014 External T.I. 2014-0519401E5 - Settlement payment for cancellation of lease
A corporation received a sum from its landlord in settlement of an action brought by the corporation for cancellation of a lease, which was not...
26 June 2012 Internal T.I. 2012-0436381I7 F - Nature d’un revenu - Indemnité d’assurance
Corporation A, a CCPC without employees which had been receiving rents from an associated corporation that were deemed to be active business...
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| Tax Topics - Income Tax Act - Section 129 - Subsection 129(6) | insurance proceeds in lieu of rents from associated corp did not qualify under s. 129(6) | 134 |
12 July 2011 Internal T.I. 2010-0366321I7 - Tax treatment of break fees received
As a break fee arguably is compensation for the transaction and opportunity costs that the bidder incurred on current account and wasted because...
6 July 2005 External T.I. 2005-0123311E5 F - paiement à employé pour règlement d'un litige
An employee was requested by his employer to exercise stock options (giving rise to a s. 7(1)(a) benefit of $5 per share, equaling the $10 FMV of...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | amount received as compensation for tax on s. 7 benefit that was realized but never available to the employee was a s. 6(1)(a) benefit | 166 |
27 January 2005 Internal T.I. 2004-0103531I7 F - Dommages Intérêts art.1618- 1619 CCQ
The taxpayer received damages plus interest after suing a supplier for the additional demolition and repair work it had to perform under a...
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| Tax Topics - Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss - Paragraph (b) - Subparagraph (b)(ii) | interest on damages received to compensate for a business loss, was business income | 57 |
11 February 2005 Internal T.I. 2005-011284
Damages received from the Department of Fisheries and Oceans in respect of the denial of a supplementary fishing licence were received on income...
12 June 2003 Internal T.I. 2003-001100
A contract termination payment received by the taxpayer was an income receipt given that termination of the contract (for the supply to it of...
20 December 2002 Internal T.I. 2002-0147967 - TAX IMPLICATIONS CONTRACT TERMINATION
A private corporation (XCo) derived almost all of its income as advisory and management fee income (as well as further fees on the sale or...
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| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition | 27 | |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(e) | 99 |
26 June 1995 External T.I. 9504145 - SETTLEMENT IN RESPECT OF TAX ADVICE
An amount received by a client in settlement of her claim for income tax, interest and penalties resulting from poor professional advice...
2 June 1994 External T.I. 9335725 - DAMAGES AND SETTLEMENTS
"A payment in settlement of a damages claim to avoid or terminate litigation will generally be accorded similar treatment as damages for tax...
87 C.R. - Q.14
A lease inducement payment received by a firm in connection with its only business location generally will not be included in income.
87 C.R. - Q.15
Consumers Gas distinguished on the grounds that the expenses incurred by the company did not advance its profits and the payments received were in...
85 C.R. - Q.21
The Saskatchewan livestock investment tax credit is treated as a reduction in feeding costs. The B.C. bond interest tax credit also is income.
IT-365R2 "Damages, settlements, and similar receipts" 8 May 1987
8. An amount received by a taxpayer in lieu of the performance of the terms of a business contract by the other party to that contract may,...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | 278 |
IT-359R2 "Premiums and Other Amounts with Respect to Leases " 20 December 1983
1. A premium or other amount received by a landlord or tenant, as the case may be, as consideration for granting or extending a lease or...
Articles
Carr, "Lease Inducement Payments", 1993 Conference Report, C. 32.
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | 0 |
Hugo, Rautenberg, "Damages and Settlements: Taxation of the Recipient", 1993 Canadian Tax Journal, Volume 41, No. 1, p. 1.
Joel A. Nitikman, "Taxability and Deductibility of Judgments and Awards", 1991 British Columbia Tax Conference, Volume 1.
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Damages | 0 |
Richardson, "Purchase and Sale of a Business: Income Tax Aspects of Warranties, Price Adjustments, and Earn-Outs", 1990 Corporate Management Tax Conference Report, c. 10, pp. 10:5-10:7
Discussion of character of payments received pursuant to warranties.
Commentary
Compensation for lost profits or income receipts
The surrogatum principle provides that the character of a receipt of an award of damages or of an...