Section 8.1
Cases
Canada v. Canada North Group Inc., 2021 SCC 30, [2021] 2 S.C.R. 571
After quoting form ss. 8.1 and 8.2 of the Interpretation Act and before going on to analyze the intended meaning of s. 227(4.1) in light of both...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(4.1) | a CCAA court can order a super-charge that has priority over the s. 227(4.1) deemed trust (which in fact does not create any Crown proprietary interest in the debtor’s assets) | 841 |
| Tax Topics - General Concepts - Ownership | Crown deemed trust interest did not have the attributes of beneficial property ownership | 386 |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | detailed listing of items covered in the 2nd part of a means and includes definition had a limiting effect | 289 |
Canada (Attorney General) v. British Columbia Investment Management Corp., 2019 SCC 63
BCI was a BC Crown agent which was formed to manage and hold investments for the provincial pension plans. The governing Act (the “PSPSA”) and...
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|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | statutory trust was not necessarily a “trust” | 271 |
| Tax Topics - Other Legislation/Constitution - Constitution Act, 1867 - Section 125 | ETA taxes that would be borne by portfolio of which a Crown agent was legal owner would contravene s. 125 | 298 |
| Tax Topics - Excise Tax Act - Section 122 | s. 122 does not preclude imposition of collection duties | 302 |
SLFI Group v. Canada, 2019 FCA 217
In finding that amounts paid by mutual funds to an offshore financing entity were to be characterized as consideration for a financing service...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (q) | dominant element in supply by funder of broker commissions was a financing service rather than a management service | 514 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | dominant element in MFT commission funding arrangement was the payment, or the arranging of payment, of the funding | 187 |
| Tax Topics - Excise Tax Act - Section 261 - Subsection 261(2) - Paragraph 262(2)(b) | denial includes where the CRA assessment of the tax was of another person | 428 |
Canada v. Raposo, 2019 FCA 208
The taxpayer and the three other members of the “Raposo clan” were involved in the sale of cocaine in the Gatineau area. CRA took the position...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | voidness of a partnership with an unlawful activity in Quebec applied for ETA purposes | 485 |
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(5) | s. 272.1(5) did not apply to debt of a partnership that was void for carrying on an illicit activity | 332 |
| Tax Topics - Income Tax Act - Section 96 | Civil Code and common law elements of partnership are similar | 96 |
BP Canada Energy Company v. Canada (National Revenue), 2017 FCA 61
An order of the Federal Court pursuant to s. 231.7(1) that BP Canada was to disclose tax accrual working papers (or, at any rate, the uncertain...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 231.1 - Subsection 231.1(1) - Paragraph 231.1(1)(d) | taxpayers should not be compelled to disclose to CRA the uncertain tax positions contained in their working papers | 369 |
Jean Coutu Group (PJC) Inc. v. Canada (Attorney General), 2016 SCC 55, [2016] 2 S.C.R. 670
After stating (at para. 47) that “despite their different origins, both rectification under Quebec civil law and rectification in equity are...
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|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | rectification must give effect to common intention at time | 807 |
Canada (Attorney General) v. Fairmont Hotels Inc., 2016 SCC 56, [2016] 2 S.C.R. 720
After concluding that the common law doctrine of rectification did not permit the parties to change their agreement so as to avoid unanticipated...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | rectification not available to correct planning errors | 638 |
Durocher v. Canada, 2016 CAF 299
Before indicating that it was unnecessary to pass on whether it was beyond the competence of the Tax Court to declare that options were invalid...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) | option valid notwthstanding that its exercise in full by holder would be illegal | 333 |
| Tax Topics - General Concepts - Illegality | proper for the Tax Court to pass on the alleged nullity of a contract in the context of passing on the correctness of an assessment | 251 |
French v. Canada, 2016 FCA 64
The position that the resident taxpayer, who resided outside Quebec, could generate a credit for at least the cash portion of his “donations”...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | Parliament may have intended what constitutes a gift outside Quebec to be partly informed by the Civil Code | 246 |
Quebec (Agence du revenu) v. Services Environnementaux AES inc., 2013 DTC 5174 [at at 6466], 2013 SCC 65, [2013] 3 S.C.R. 838
In the course of finding that the taxpayers could avail themselves of a declaration under the Civil Code that their initial written documents did...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | Quebec documents did not implement common intention to defer tax | 873 |
Wolf v. Canada, 2002 DTC 6853, 2002 FCA 96
Before determining that the taxpayer was an independent contractor governed by Article XIV of the Canada-U.S. Income Tax Convention rather than...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions | 62 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 14 | 218 |
See Also
ARTV Inc. v. Agence du revenu du Québec, 2016 QCCQ 8757 (Cour du Québec)
ARTV would have been associated with its largest shareholder (Radio Canada) under the Quebec equivalent of s. 251(5)(b)(i) if the obligation of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) | a shareholder’s right to put its shares did not give the other shareholder a s. 251(5)(b)(i) “right” to acquire those shares | 374 |
Markou v. The Queen, 2016 TCC 137
C. Miller J rejected a Crown submission that he lacked the jurisdiction to determine whether, under Ontario law, a Quistclose trust attached to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | TCC had jurisdiction to determine that no lender equitable remedy (under Quistclose trust doctrine) attached to leveraged donation advances | 425 |
| Tax Topics - General Concepts - Payment & Receipt | funds in leveraged donation scheme essentially advanced by lender directly to charity | 108 |
Barejo Holdings ULC v. The Queen, 2015 DTC 1216 [at 1405], 2015 TCC 274, aff'd on other grounds 2016 FCA 304
An offshore fund ("SLT"), in which the taxpayer had an interest, invested in instruments (styled as "Notes") of non-resident subsidiaries of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract | "notes" which tracked actively-managed reference pool of assets were "debt" | 732 |
| Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) | "notes" which tracked actively-managed reference pool of assets were "debt" and "indebtedness" | 184 |
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Property | "notes" which tracked actively-managed reference pool of assets were "debt" and "indebtedness" | 184 |
French v. The Queen, 2015 TCC 35
The taxpayer participated in the same donation scheme as in Kossow. The taxpayer, who was not a Quebec resident, sought to apply the Quebec civil...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | tax results in common and civil law need not be uniform | 144 |
Snively v. The Queen, 2011 TCC 196 (Informal Procedure)
In finding that the appellant was subject to liability as a director under s. 323 of the ETA because the appellant was deemed to be a director by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 323 - Subsection 323(3) | 164 | |
| Tax Topics - Excise Tax Act - Section 323 - Subsection 323(5) | 116 |
Administrative Policy
16 December 2019 Internal T.I. 2019-0816101I7 - Loans from LTD Partnerships to LTD Partner
Before indicating that whether a payment made by a limited partnership to a limited partner that was styled as a loan was to be treated as a loan...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(c) | validity of loan by Ontario LP to limited partner turns on Ontario law | 344 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) | whether loans from Ontario LP to limited partner are distributions turns on whether Ontario statutory law overrides common law | 310 |
| Tax Topics - Income Tax Act - Section 96 | loan by a partnership to partner is a distribution at common law | 146 |
1 December 2015 Internal T.I. 2015-0588381I7 F - Classification of US-LLCs
In rejecting a submission that in light of Backman and the introduction of s. 8.1 of the Interpretation Act, and on the basis of a comparison of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation | status of Delaware, NY and Florida LLCs as corps not affected by Quebec residence of member | 335 |
| Tax Topics - Income Tax Act - Section 96 | corporation/partnership classification of foreign entity not affected by Quebec residence of member | 233 |
1 April 2009 Internal T.I. 2009-0307151I7 F - Employé ou travailleur autonome
Two Quebec statutes that declared various individuals responsible for a family childcare service and workers designated as a family-type resource...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | Bills deeming workers not to be employees were unconstitutional | 84 |
Section 10
See Also
Barker v Baxendale Walker Solicitors (a firm) & Anor, [2017] EWCA Civ 2056
Before going on to find that a tax solicitor was negligent in not warning that his interpretation of s. 28(4)(d) of the Inheritance Tax Act 1984...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Negligence, Fiduciary Duty and Fault | tax solicitor was negligent in not advising of the risk of an alternative interpretation | 429 |
Caplan v. The Queen, 95 DTC 709 (TCC)
Bell TCJ. found that if s. 160(1) had not been amended to speak in the present tense rather than in the past tense, a subsequent discharge from...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | bankruptcy order of discharge retroactively released transferor of tax liability | 128 |
Section 11
Cases
Ginsberg v. Canada, 96 DTC 6372, [1996] 3 CTC 63 (FCA)
After noting that recent decisions have diminished the importance of the distinction between directory and mandatory provisions, Desjardins J.A....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | 21 | |
| Tax Topics - Income Tax Act - Section 165 - Subsection 165(3) | Minister's failure to act with all due dispatch is not a basis for vacating an assessment | 118 |
| Tax Topics - Income Tax Act - Section 166 | 47 |
Meuse v. The Queen, 94 DTC 6640, [1995] 1 CTC 21 (FCTD)
The statement in s. 6(2)(d) of the Act, that "for the purposes of this subsection, it shall be assumed, unless the taxpayer establishes otherwise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(5) | 77 |
The Queen v. Adelman, 93 D.T.C 5376 FCtd
The statement in Regulation 4700 that an election under ITAR 26(7) "shall" be made on the form prescribed was imperative rather than directory. In...
Baron v. Canada, 93 DTC 5018, [1993] 1 S.C.R. 416, [1993] 1 CTC 111
In finding that the word "shall" in s. 231.3(3) was imperative, Sopinka J. stated (p. 5026):
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 8 | invalid removal of judicial discretion | 59 |
| Tax Topics - Income Tax Act - Section 231.3 - Subsection 231.3(3) | 101 |
Jack Herdman Ltd. v. MNR, 83 DTC 5274, [1983] CTC 272 (FCA)
A provision in the Excise Tax Act stating that a refund "may" be granted gave the Minister the discretion to refuse refund applications.
See Also
Haight v. The Queen, 2000 DTC 2571 (TCC)
In finding that the word "shell" in s. 166.1(2) was directory rather than mandatory (so that a letter to the Tax Services Office that did not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 166.2 - Subsection 166.2(1) | 113 |
Section 12
Cases
Gastrebski v. The Queen, 94 DTC 6355 (FCA)
Linden J.A. found it inadvisable to limit the meaning of the word "event" in s. 19(1) of the Income Tax Application Rules to sudden or trumatic...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Application Rules - Subsection 19(1) | 98 | |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Act - Section 18.24 | 89 |
Hale v. The Queen, 92 DTC 6473 (FCA)
The Canada-U.K. Convention, like the Income Tax Act, was governed by s. 12 of the Interpretation Act.
Re Stern, 85 DTC 5002, [1984] CTC 647 (FCTD)
It was found that granting the Crown leave to require a third party to participate by joinder as a defendant in an action was the result that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 174 - Subsection 174(4.1) | 96 |
Fradet v. The Queen, 83 DTC 5445, [1983] CTC 424 (FCTD), aff'd 86 DTC 6411, [1986] 2 CTC 321 (FCA)
The amount of proceeds of disposition was assessed "realistically", notwithstanding the absence of a specific provision authorizing the deduction...
Stirling v. The Queen, 83 DTC 5252, [1983] CTC 220 (FCTD), rev'd 85 DTC 5199, [1985] 1 CTC 275 (FCA)
In order to give effect to the spirit of the Act, the "cost" of gold bullion was interpreted as including carrying charges (such as interest)...
Commr. of N.W.T. v. Pine Point Mines Ltd., [1981] 5 WWR 420 (N.W.T.S.C.)
"[W]hen there is a provision in a statute that every Act shall be deemed remedial and shall receive such fair, large and liberal construction as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property | 18 |
See Also
Hillier v. The Queen, 2000 DTC 2145 (TCC) (Informal Procedure)
Bowman TCJ. applied s. 12 in finding that a reference in s. 118.2(2)(l.2) of the Act to reasonable expenses relating to "renovations or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(l.2) | 107 |
APL Oil & Gas Ltd. v. The Queen, 96 DTC 1666 (TCC)
An assessment that erroneously referred to the taxation year of the taxpayer as ending on January 2, 1987 rather than December 31, 1986 was deemed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | incorrect year referenced | 27 |
Radage v. The Queen, 96 DTC 1615, [1996] 3 CTC 2510 (TCC) (Informal Procedure)
After citing s. 12 and before finding that the taxpayer was entitled to the disability credit, Bowman TCJ. stated (at p. 1625):
"If there is doubt...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.4 - Subsection 118.4(1) | 66 |
Section 14
Cases
Lawyers’ Professional Indemnity Company v. Canada, 2020 FCA 90
Before going on to accord a restrictive interpretation to s. 149(1)(d.5) based on the wording of the marginal note to s. 149(1)(c), which...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.5) | LPIC was not exempt under s. 149(1)(d.5) because its owner, the Law Society, did not provide municipal-type services | 452 |
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | narrower construction avoided rendering language redundant | 81 |
| Tax Topics - Statutory Interpretation - Consistency | presumption of the same meaning | 78 |
Brill v. The Queen, 96 DTC 6572, [1997] 1 CTC 2 (FCA)
Linden J.A. found support for his interpretation of s. 79(c) by referring to the marginal notes, and stated (at p. 6575) that although the...
Fraser Companies, Ltd. v. The Queen, 81 DTC 5051, [1981] CTC 61 (FCTD)
"Despite section 13 of the Interpretation Act to the effect that marginal notes form no part of the enactment but shall be deemed to have been...
Subsection 15(1)
Cases
Qit-Fer et Titane Inc. v. The Queen, 92 DTC 6071, [1992] 1 CTC 39 (FCTD), aff'd on different grounds 96 DTC 6213 (FCA)
Rouleau J. applied s. 15(1) of the Interpretation Act in finding that because ss.125.1(3)(b)(v), (vi) and (vi.1) excluded the production of ferric...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing (l) | 107 | |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 33(3) | 105 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | presumption against redundancy | 63 |
Androwich v. The Queen, 90 DTC 6084, [1990] 1 CTC 78 (FCTD), briefly aff'd 93 DTC 5275 (FCA)
"Where a term is defined in a particular statute, as 'earned income' is defined in the ITA, that definition prevails over its ordinary or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(1) - Earned Income | 15 |
Subsection 15(2)
Cases
The Queen v. Canadian Marconi Co., 91 DTC 5626, [1991] 2 CTC 352 (FCA)
In finding that the definition in s. 248(1) of the Income Tax Act of "assessment" was not conclusive, Mahoney J.A. stated (p. 5629):
"That...
Scott v. The Queen, 91 DTC 5268, [1991] 1 CTC 395 (FCTD), varied 94 DTC 6193 (FCA)
Walsh J. stated, in dealing with the definition of "office" in s. 248(1) which deemed a director to be an officer, stated (p. 5275):
"While a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(a) | 95 |
Holiday Luggage Mfg. Co. Inc. v. The Queen, 86 DTC 6601, [1987] 1 CTC 23 (FCTD)
Joyal, J. stated "that statutory definitions of terms contained in Part XVII - Interpretation of the Income Tax Act may be far from conclusive...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(1) - Paragraph 256(1)(d) | "corporation" did not include non-resdient corporation without Cdn nexus | 61 |
Quemont Mining Corp. Ltd. v. MNR, 66 DTC 5376, [1966] CTC 570 (Ex. Ct.), aff'd 70 DTC 6046 (SCC)
Although Regulation 701(2)(a) defined "income derived from mining operations" to mean income calculated under the federal Act, the clear meaning...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(7) - Non-Business-Income Tax | 79 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | Quebec mining taxes non-deductible | 60 |
Settled Estates Ltd. v. Minister of National Revenue, 60 DTC 1128, [1960] CTC 173, [1960] S.C.R. 606
Although s. 63(2) of the pre-1972 Act (the predecessor of s. 104(2)) deemed executors to be individuals for certain purposes, that provision had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | 49 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Individual | 111 |
Section 16
Cases
Canada v. Castro, 2015 DTC 5113 [at 6266], 2015 FCA 225, rev'g sub nom. David v. The Queen, 2014 DTC 1111 [at 3236], 2014 TCC 117
In denying charitable credits for the cash contributions on the basis that inflated amounts shown on the receipts rendered them invalid under the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | inflated charitable receipt not a "benefit" vitiating a gift (donative intent issue not properly raised) | 175 |
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(2) | inflated charitable receipt was invalid | 193 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(32) | inflated charitable receipt not an "advantage" | 124 |
| Tax Topics - Income Tax Regulations - Regulation 3501 | inflated charitable receipt was invalid | 193 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 32 | inflated charitable receipt not an "advantage" | 124 |
Stearns Catalytic Ltd. v. The Queen, 90 DTC 6286, [1990] 1 CTC 398 (FCTD)
McNair J. stated that he proposed to ignore the words "directly or indirectly" modifying the word "use" in paragraph a(i) of Class 29 of Schedule...
International Nickel Co. of Canada Ltd. v. MNR, 71 DTC 5332, [1971] CTC 604 (FCTD)
After referring to what then was s. 15 of the Interpretation Act, Cattanach J. stated (at p. 5346):
"In my view the word 'development' in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Accounting Principles | 90 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Know-How and Training | 145 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Lessening of Competition | 145 | |
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) | s. 37 permits deduction of capital expenditures on research | 114 |
| Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(1) | 145 |
See Also
Weyerhaeuser Company Limited v. The Queen, 2007 TCC 65
Before going on to interpret Reg. 105 narrowly and find that it was intra vires (by interpreting the reference therein to fees “in respect of”...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | no withholding on reimbursements for disbursements/no requirement for documentary support for allocations in NRs' invoices/travel time to Canada not re Cdn services | 499 |
| Tax Topics - Statutory Interpretation - Regulations/Statutory Delegation | narrow construction of Reg. so as to be intra vires | 212 |
Hickman Motors Limited, Appellant v. Her Majesty the Queen, Respondent, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213
L'Heureux-Dubé J. stated (at p. 5368) that reading s. 20(1)(a) "without considering the regulations would not be in accordance with appropriate...
Section 17
Cases
Canada v. Nova Scotia Power Inc., 2003 DTC 5090, 2003 FCA 33
Section 4 of the Power Commission Act (Nova Scotia) provided that the Nova Scotia Power Commission " ("NSPC") "shall continue as a body corporate...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(f) | 250 |
In Re Gaston H. Poulin Contractor Ltd., 92 DTC 6338, [1992] 2 CTC 373 (Ont. Ct. J. (Commercial List))
The Companies Creditors Arrangement Act (Canada) was found not to bind the Crown in that there are no provisions of that Act which would indicate...
C.I.B.C. v. The Queen, 84 DTC 6426, [1984] CTC 442 (FCTD)
To the extent that s. 178 of the Bank Act gives a bank priority over the Crown, the Crown's rights are not affected since by virtue of the s. 178...
The Queen v. Epstein, 84 DTC 6259, [1984] CTC 270 (FCTD)
The word "mortgagor" was given its common-law meaning rather than the extended meaning accorded to it by the Mortgages Act (Ontario).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 4900 - Subsection 4900(4) | 77 |
Dauphin Plains Credit Union Ltd. v. Xyloid Industries Ltd., 80 DTC 6123, [1980] CTC 247, [1980] 1 S.C.R. 1182
"It is a well established rule that provincial enactments are presumed to be intended to avoid interference with federal legislation". The Payment...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | receiver-manager included | 25 |
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(2) | 36 | |
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(5) | 41 | |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(3) | "liquidation" includes forced (and not just voluntary) distribution of all the assets of a company | 298 |
The Queen v. Ogden Enterprises Ltd., [1980] CTC 106 (N.B.C.A.)
It was found that the provincial Legislature unquestionably had the power to declare the nature of the relationship between the provincial Crown...
Section 26
Cases
Csak v. The King, 2024 TCC 9
Two months after their marriage, the taxpayer received (on January 8, 1993) from her husband (“CC”) the transfer of a property valued in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | marrying and caring for the transferor was not consideration for the transfer | 237 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(ii) | Minister failed to meet her onus that a waiver had been timely-received/ s. 26 of Interpretation Act did not extend the normal reassessment period for receiving the 2nd waiver | 368 |
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(2) | taxpayer able to dispute the validity of assessments of her transferor husband even though an executrix of his estate at the time of his unsuccessful appeal of those assessments | 286 |
| Tax Topics - General Concepts - Onus | Minister failed to meet her onus that a waiver had been timely-received | 154 |
| Tax Topics - General Concepts - Res Judicata | res judicata did not apply to taxpayer’s dispute of the validity of assessments of her transferor husband even though an executrix of his estate at the time of his unsuccessful appeal of those assessments | 202 |
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.1 - Subsection 18.1(2) | collection matters for the Federal Court | 40 |
Administrative Policy
9 October 2015 APFF Roundtable Q. 21, 2015-0598291C6 F - Filing deadline for various forms
As Saturdays are "public holidays" as defined in s. 35 of the Interpretation Act, this means that if the return filing deadline of the taxpayer...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | where a return filing deadline falls on a Saturday, the deadline for the T2057 also is extended to the Monday | 58 |
TPM-05R – Requests for Contemporaneous Documentation 28 March 2014
19. [extension if holiday] When the last day to comply falls on a holiday, the taxpayer has until the next day that is not a holiday to comply,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(4) | 370 | |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 28 | 99 |
Section 27
Subsection 27(3)
Administrative Policy
10 March 2016 Internal T.I. 2015-0614161I7 - Extended reassessment period 152(4)(b)
A Canadian-controlled private corporation was issued an original notice of assessment for a particular taxation year on December 31, 2013. Is the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) | extended reassessment period ends on the assessment anniversary date | 44 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(3.1) | normal reassessment period ends on the assessment anniversary date | 39 |
Subsection 27(4)
See Also
Toronto Dominion Bank v. B.C. (Commissioner of Income Tax), 2017 BCCA 159
The 2012 taxation year of the taxpayer (“TD”) ended on October 31, 2012. Under s. 24(1) of the International Business Activity Act (B.C.), it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.2) | Commissioner improperly restricted herself to applying only the published guidelines on extending a return-filing deadline | 293 |
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(11) | May 1, 2014 was not within 18 months of year-end October 31, 2012 | 58 |
Administrative Policy
4 May 2006 Internal T.I. 2006-0183801I7 F - 152(3.1) Normal Reassessment Period Determination
A CRA notice of assessment dated May 3, 2003 was sent to the individual taxpayer. After referring to s. 27(4) of the Interpretation Act, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(3.1) | normal reassessment period excludes the day of initial assessment | 89 |
Subsection 27(5)
Administrative Policy
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 3, 2021-0896031C6 F - Règles sur les pertes apparentes
Mr. A sold 1,000 shares of a listed company in a non-registered account on September 1, 2021 at a capital loss of $20,000. The RRSP of his spouse,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Superficial Loss | application of superficial loss rule to reacquisition of identical shares by spousal RRSP on the 30th day | 356 |
Section 28
Cases
MNR v. Kayelle Management (Yukon) Inc., 94 DTC 6116, [1994] 1 CTC 271 (FCA)
Because s. 157(1) of the Act contemplated that time should not be computed on a calendar-year or a calendar-month basis, ss. 28 and 35(1) of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 157 - Subsection 157(1) | 151 |
Administrative Policy
TPM-05R – Requests for Contemporaneous Documentation 28 March 2014
17. [s. 247(4)(c): "within 3 months"] Under paragraph 28(c) of the Interpretation Act, the day on which the three-month period expires will bear...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(4) | 370 | |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 26 | 44 |
Subsection 31(3)
Cases
MacMillan Bloedel Ltd. v. Min. of Fin. (B.C.), [1982] CTC 269 (BCCA)
S.23(3) of the Interpretation Act (B.C.) (similar to s. 31(3)) does not apply to an administrative power of a quasi-judicial character that is...
Section 32
Cases
3533158 Canada Inc. v. Canada (the Attorney General), 2024 FC 1090
A week after being informed by CRA that its US parent, which was its agent pursuant to s. 177, had been claiming input tax credits (ITCs) which...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(4) - Paragraph 296(4)(b) | CRA was precluded on assessing in allowing ITCs beyond the 4-year limitation period | 543 |
| Tax Topics - Excise Tax Act - Section 238 - Subsection 238(1) | global return covering 4 years was invalid | 103 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Registrant | ITC claimant failed to establish any taxable sales in reporting periods prior to the initial effective date of its registration | 177 |
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.1 - Subsection 18.1(2) | taxpayer did not demonstrate that CRA delays in processing its ITC claims represented undue delay | 475 |
Easy Way Cattle Oilers Ltd. v. Canada, 2016 FCA 301
D'Arcy J had found that the taxpayer’s late-filing (by six weeks) of Schedule 31 meant that its SR&ED credits for the year in issue were...
Canada v. Castro, 2015 DTC 5113 [at 6266], 2015 FCA 225, rev'g sub nom. David v. The Queen, 2014 DTC 1111 [at 3236], 2014 TCC 117
A group of individuals made cash contributions to a registered charity on the basis that the charity would issue charitable receipts to them for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | inflated charitable receipt not a "benefit" vitiating a gift (donative intent issue not properly raised) | 175 |
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(2) | inflated charitable receipt was invalid | 193 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(32) | inflated charitable receipt not an "advantage" | 124 |
| Tax Topics - Income Tax Regulations - Regulation 3501 | inflated charitable receipt was invalid | 193 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 16 | Regs read in context of enabling legislation | 82 |
Mitchell v. Canada, 2002 DTC 7502, 2002 FCA 407
A letter was found to be a waiver for purposes of s. 152(4)(a)(ii) notwithstanding that it was not contained on a prescribed form.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(ii) | CRA "obliged to treat any document as a waiver, providing it contains the necessary information" | 106 |
See Also
Poirier v. The Queen, 2019 TCC 8
The appellant applied for the new housing rebate on his purchase of a new condo unit even though he had already agreed to lease it out effective...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 297 - Subsection 297(1) | 12 months to bounce a rebate application was “with all due dispatch” | 314 |
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(b) | intention to occupy vitiated when agreement to lease the new condo | 103 |
| Tax Topics - Excise Tax Act - Section 256.2 - Subsection 256.2(7) - Paragraph 256.2(7)(a) | no power to extend 2-year deadline even where new housing rebate mistakenly applied for within 2 years | 126 |
| Tax Topics - Excise Tax Act - Section 262 - Subsection 262(1) | failure to include prescribed information vitiated purported new rental housing rebate application | 270 |
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(2.1) | s. 296(2.1)(b) precluded using s. 296(2.1) to overcome the 2-year deadline for claiming the NRRP rebate | 302 |
Robertson v. The Queen, 97 DTC 449, [1996] 2 CTC 2269 (TCC)
S.32 was of no assistance to cure a purported election under s. 39(4) because "section 32 is concerned with variations in the form itself and not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | 36 | |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | deputy chairman and director of public company dealt at arm's length with it | 70 |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(4) | 36 |
Billard Fisheries Ltd. v. The Queen, 96 DTC 1577 TCC
In considering the potential application to the taxpayer of Regulation 105(2), which required persons paying remuneration to fishermen to withhold...
Acton v. The Queen, 95 DTC 170 (TCC)
The requirement on the taxpayer to apply for a carry-back of non-capital losses through the filing of a prescribed form was satisfied when he...
Subsection 33(2)
Cases
Sheldon Inwentash and Lynn Factor Charitable Foundation v. Canada, 2012 FCA 136
Dawson J.A. rejected a submission that the definition in s. 149.1(1) of a public foundation should be read in the singular, so that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149.1 - Subsection 149.1(1) - Public Foundation | 114 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | clear words dominate | 137 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | a person does not deal at arm’s length with itself | 53 |
Heath v. The Queen, 90 DTC 6009 (BCSC)
s.232(1)(e), which refers to the accounting record of a lawyer, was interpreted to refer to the accounting records of a firm of lawyers.
Healy v. The Queen, 79 DTC 5060, [1979] CTC 44 (FCA)
In order to give effect to the overall objective of s. 8(4) of the Income Tax Act, "establishment" was applied in its plural sense, whereas...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(4) | 123 |
Electric Power Equipment Ltd. v. MNR, 67 DTC 5322, [1967] CTC 479 (Ex Ct)
In light of s. 31(j) of the Interpretation Act, R.S.C. 1952, C. 158, Sheppard D.J. found that the reference in s. 39(4)(d) to "one of those...
MNR v. Ontario Paper Co. Ltd., 58 DTC 1046, [1958] CTC 71 (Ex Ct), briefly aff'd 59 DTC 1327 (SCC)
Kearney J. found that the word "amount" in s. 11(1)(f) of the pre-1972 Act should be interpreted as referring to "amount or amounts" in light of...
Army & Navy Department Stores Ltd. v. Minister of National Revenue, 53 DTC 1185, [1953] CTC 293, [1953] 2 S.C.R. 496
In finding that reference to control by a person did not include control by persons, Cartwright J. stated (pp. 1192-1193):
"When section 127 by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) | shareholders do not indirectly own any of the corporation’s property | 299 |
| Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius | reference to person implied exclusion of persons | 129 |
| Tax Topics - General Concepts - Ownership | the shares of a subsidiary of a corporation are not owned “indirectly” by the shareholders of that corporation | 134 |
See Also
Melinte v. The Queen, 2008 TCC 185 (Informal Procedure)
Clause (a)(iii)(B) of the definition of "qualifying residential unit" in s. 256.2(1) of the Excise Tax Act applies to residential units that are...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 256.2 - Subsection 256.2(1) - Qualifying Residential Unit - Paragraph (a) - Subparagraph (a)(iii) | purchaser was required only to satisfy reasonable expectation rather than actual use test | 569 |
Abdalla v. The Queen, 2011 DTC 1247 [at 1412], 2011 TCC 328 (Informal Procedure)
Webb J. found that a s. 118.5(1)(b)(i), which disallows deductions of fees for courses of study outside of Canada if they are "paid in respect of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.5 - Subsection 118.5(1) | "course" duration requirement could be satisfied by multiple consecutive "courses" | 106 |
Rye v. Rye, [1962] A.C. 496 (HL)
S. 72(3) of the Law and Property Act 1925 provided that "a person may convey land to or vest land in himself." It was accepted that "the singular...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) | contract between a partner and partnership is invalid | 186 |
Administrative Policy
25 June 2018 Internal T.I. 2017-0737151I7 - Application of paragraph 40(3.5)(c)
Subject to exceptions, if a capital loss realized on the transfer by Canco of shares of a controlled foreign affiliate is suspended under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(c) - Subparagraph 40(3.5)(c)(i) | the wind-up of a CFA into three shareholders is a merger to form three corporations | 481 |
2016 Ruling 2016-0632001R3 - Replacement Property
CRA has ruled that where the expropriation proceeds of a farm will be used to purchase two nearby farms (with the scale of the farming business...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a) | two properties to be used in expanded farming business will be replacement property for single former property | 309 |
26 February 2015 CBA Roundtable, Q. 13
CRA stated that it “may consider…two agreements to constitute a single joint venture agreement” for the purpose of the requirement in ETA s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | JV + management agreements can qualify as “an agreement”/“co-ownership agreement” can be a JV agreement | 320 |
28 May 2015 External T.I. 2015-0582901E5 - 149(1)(o.2) Pension corporation
S. 149(1)(o.2)(iv)(B) refers to "one or more trusts all the beneficiaries of which are registered pension plans." In light of s. 33(2) of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(iv) | trust/seg fund shareholder can have only one beneficiary | 150 |
2013 Ruling 2012-0463471R3 - Single Reclamation Trust
The definition in s. 211.6(1) of a "qualifying environmental trust" refers to trust that is maintained solely for the purpose of funding the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 211.6 - Subsection 211.6(1) - Qualifying Environmental Trust | consolidation of trusts for different sites | 122 |
15 May 2002 External T.I. 2001-0107805 F - PLUSIEURS ENTREPRISES
CCRA indicated that it would be appropriate to apply s. 33(2) of the Interpretation Act to the requirement in s. 98(5) that the proprietor carry...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) | where the terminated partnership carried on more than one business, s. 98(5) requires the sole proprietor to carry on all of those businesses | 176 |
29 May 2001 External T.I. 2001-0075245 F - SOCIETE DE GESTION DE PENSION
CCRA applied s. 33(2) to find that the reference in s. 149(1)(o.2)(i) to a corporation incorporated before November 17, 1978 “in connection...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(i) | s. 149(1)(o.2)(i) corporation can be incorporated for the administration of more than one RPP – but cannot be incorporated to provide management services to other RPPs | 157 |
4 May 1995 Internal T.I. 9509607 - PRINCIPAL RESIDENCE EXEMPTION AND CAPTIAL GAINS
The words of s. 26(7) [now 33(2)] "do not in our view act to pluralize words contained in a provision of the Act which obviously addresses itself...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | 80 |
Articles
Ian Bradley, Jonathan Bright, "The Stop-Loss Rules and Corporate Reorganizations – Interpretive Challenges", Canadian Tax Journal, (2019) 67:2, 383-410
Contrary intent re pluralization of words (p. 398)
The CRA claimed [in 2017-073715117] that subparagraph 40(3.5)(c)(i) can apply to a winding up...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(c) - Subparagraph 40(3.5)(c)(i) | 1368 |
Subsection 33(3)
Cases
Qit-Fer et Titane Inc. v. The Queen, 92 DTC 6071, [1992] 1 CTC 39 (FCTD), aff'd on different grounds 96 DTC 6213 (FCA)
Rouleau J. found that in Coca-Cola Ltd. v. Deputy Minister of National Revenue for Customs and Excise, 84 DTC 6081, [1984] CTC 75 (FCA), the Court...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125.1 - Subsection 125.1(3) - Manufacturing or Processing (l) | 107 | |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 15(1) | 107 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | presumption against redundancy | 63 |
Administrative Policy
26 June 2019 Internal T.I. 2019-0791761I7 - Participating employer in RPP
CRA indicated that the phrase an "employer [who] participates in the plan” used in s. 147.2(2)(a)(vi) was a “grammatical variation” of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 147.1 - Subsection 147.1(2) - Paragraph 147.1(2)(a) - Subparagraph 147.2(2)(a)(vi) | contributing employer who ceases to exist nonetheless considered to be an “employer [who] participates” | 244 |
| Tax Topics - Income Tax Act - Section 147.1 - Subsection 147.1(1) - Participating Employer | dissolved corporation can be a “participating employer” in an RPP | 141 |
Subsection 34(2)
Cases
Knox Contracting Ltd. v. The Queen, 86 DTC 6417, [1986] 2 CTC 194 (NBQB)
S.443 only has specific application to the Criminal Code and is incapable of being read to apply to the Income Tax Act.
The Queen v. Print Three Inc., 85 DTC 5303, [1985] 2 CTC 48 (Ont CA)
Since s. 231(4) was in breach of s. 8 of the Charter, there was no code of search and seizure in the Income Tax Act and resort accordingly could...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 231.3 - Subsection 231.3(3) | 134 |
Thomson v. Minister of National Revenue, 2 DTC 812, [1946] S.C.R. 209
The amendment of a provision effective after the taxation year in question to refer to ordinary residence "at any time in the year" rather than...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | 262 | |
| Tax Topics - Income Tax Act - Section 250 | 262 |
Section 35
Administrative Policy
7 October 2011 Roundtable, 2011-0411831C6 F - Définition du mot mois
On February 5, 2009, Mr. X acquired all the shares of Opco from an unrelated individual, and then disposed of those shares to an unrelated person...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (b) | individual required to have held shares for 24 months plus one day to and including day of the determination time | 165 |
Subsection 35(1)
Broadcasting
Administrative Policy
27 March 2018 External T.I. 2017-0715561E5 - Withholding tax on royalties for streamed content
Canco streams movies and TV shows (the “digital content”) to its Canadian and foreign subscribers (who pay monthly fees) through a TV video...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | NR fee for streamed films and TV shows taxable under s. 212(5) only re Canadian use or reproduction | 329 |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | television and broadcasting included digital streaming | 349 |
Corporation
Articles
Angelo Discepola, Robert Nearing, "A Reply to the CRA's Classification of Florida and Delaware LLLPs and LLPs as Corporations", 2016 Conference Report (Canadian Tax Foundation), 24:1-39
Implicit treatment by Interpretation Act of LLP/LLLPs as not being corporations (p. 24:28)
[S]ection 35 of the Interpretation Act…supports...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation | 86 | |
| Tax Topics - Income Tax Act - Section 96 | 1523 |
Section 37
Subsection 37(1)
Administrative Policy
30 April 2008 External T.I. 2007-0257041E5 F - Crédit pour la création d'emplois d'apprentis
The definition of "eligible apprentice" in s. 127(9) referenced inter alia the employment under an apprenticeship contract in Canada during the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Eligible Apprentice | industry concept of 2000 hours per apprenticeship “year” was inapplicable | 162 |
Section 42
Subsection 42(3)
Cases
Onex Corporation v. Canada (Attorney General), 2024 FC 1247
The applicants (Onex) sought the authorization of the Minister pursuant to s. 220(2.1) to waive the requirement to file a late election pursuant...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) | CRA failed to consider, in light of the remedial nature of s. 220(3), that it could be used to permit an amended return that accomplished a late election not listed in Reg. 600 | 641 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(2.1) | CRA should consider, in light of the remedial nature of ss. 20(2.1) and (3), that they could be used to accommodate a late election not listed in Reg. 600 | 615 |
Section 44
Paragraph 44(h)
Administrative Policy
12 March 2012 Internal T.I. 2011-0431631I7 F - Catégorie d'amortissement- maison flottante
In finding that a vessel was as defined in the Canada Shipping Act, 2001, notwithstanding the reference in the s. 13(21) definition to the Canada...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 7 | portable floating home qualified as “vessel” | 114 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Vessel | vessel is as defined in Canada Shipping Act, 2001 | 115 |
25 November 2010 External T.I. 2010-0377841E5 F - Catégorie d'amortissement - bateau
In determining that a boat that lacked means of propulsion qualified as a “vessel” per Class 7(c), CRA stated:
Subsection 13(21) defines a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 7 - Paragraph 7(c) | “vessel” includes a moored boat without a motor | 133 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Vessel | "vessel" now defined in (replacement) Canada Shipping Act, 2001 | 55 |
Subsection 45(2)
Cases
Canada (The King) v. MICROBJO PROPERTIES INC., 2023 FCA 157
In rejecting the taxpayers’ submission that the introduction of s. 160(5) confirmed its narrow reading of s. 160(1), Noël C.J. stated (at para....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | a transaction that split, on the purchaser’s terms, a tax savings purportedly generated by it, was a non-arm’s length transaction | 701 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | parties were not dealing at arm's length in transactions where they did not put their own patrimony in play | 370 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | taxpayers did not intend to avoid (and were oblivious to) s. 160 | 265 |
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(5) | s. 160(5) did not change the prior view that prior facts could be taken into account | 96 |
Canada v. Oxford Properties Group Inc., 2018 FCA 30
In the course of finding on other grounds that an amendment (in s. 88(1)(d)(ii.1)) was consistent with the pre-amendment object and spirit of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | using the s. 88(1)(d) bump on newly-formed rental property LPs to avoid indirect recapture income under s. 100(1) was abusive | 975 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | s. 88(1)(d) bump is intended to permit the transfer of ACB that otherwise would be lost to another property that is taxed in the same way | 371 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | s. 98(3)(c) bump is intended to avoid gain realization where there has been no economic gain | 267 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | 3-year time limitation in s. 69(11) did not establish safe harbor for avoidance of recapture on sale after that period | 382 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) | purpose is to ensure that latent recapture will be recognized on sale to tax exempt | 254 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | object includes ultimate taxation of the deferred gain | 234 |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | GAAR question as to determining a provision’s object was subject to correctness standard | 169 |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | statement that amendment was for “clarification” was self-serving | 209 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | consequential s. 245(2) adjustment must be scaled to the abuse | 391 |
CIBC World Markets Inc. v. Canada, 2011 FCA 270
Stratas JA found that in the years in question there was no provision requiring that the choice of method by the registrant for computing input...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(5) | no implied irrevocability of choice of method | 177 |
| Tax Topics - Statutory Interpretation - Inserting Words | no implied irrevocability of election | 24 |
Zen v. Canada (National Revenue), 2010 DTC 5109 [at 6979], 2010 FCA 180
The taxpayer, who had been assessed under s. 227(10) for his joint liability under s. 227.1 for the taxes of the corporation of which he was a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(10) | unnecessary to issue further assessments for interest that accrued on the director's liability | 40 |
Silicon Graphics Ltd. v. Canada, 2002 DTC 7113, 2002 FCA 260
After referring to a subsequent amendment to the definition of Canadian-controlled private corporation, Sexton J.A. stated (at p. 7118) that "the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | U.S. public shareholders not a group; no de facto control by lender/licensor | 345 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | must be right to affect board or directly influence shareholders | 187 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(6) | 65 | |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | 23 | |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 64 |
Waltz v. The Queen, 2001 DTC 462 (TCC)
Dussault T.C.J. stated (at p. 468) that s. 45(2)
"Does not mean however that it cannot be inferred from the context of an amendment that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 79 | 142 |
The Queen v. Mara Properties Ltd., 95 DTC 5168, [1995] 2 CTC 86 (FCA), rev'd 96 DTC 6309, [1996] 2 S.C.R. 161
The enactment of s. 249(4) in 1987, whose provisions would have prevented the taxpayer from acquiring a corporation with an accrued but unrealized...
MCA Television Ltd. v. The Queen, 94 DTC 6375 (FCTD)
MacKay J. found that no assistance as to the meaning of the phrase "motion picture films" should be derived from subsequent amendments to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | 104 | |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(5) | 225 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | 48 | |
| Tax Topics - Treaties - Income Tax Conventions - Article 12 | 97 |
Woodward Stores Ltd. v. The Queen, 91 DTC 5090, [1991] 1 CTC 233 (FCTD)
Before finding that the introduction of paragraph 12(1)(x) effected a change in the law, Joyal J. stated (p. 5100):
"[s.45(2)] simply states that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | 85 | |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | tax-free fixturing allowances | 85 |
Indalex Ltd. v. The Queen, 86 DTC 6598, [1986] 2 CTC 482 (FCA)
It was noted that the use of "for greater certainty" language in S.164(4.1) precluded the application of the maxim inclusio unius est exclusio...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(4.1) | 107 |
French Shoes Ltd. v. The Queen, 86 DTC 6359, [1986] 2 CTC 132 (FCTD)
In light of s. 45(2) of the Interpretation Act, it was held that it was not permissible to infer that the enactment of s. 12(1)(x) was an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business | 79 | |
| Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement | 79 |
The Queen v. B.B. Fast & Sons Distributors, 86 DTC 6106, [1986] 1 CTC 299 (FCA)
A comparison of s. 256(1)(e) with s. 39(4) of the pre-1972 Act helped establish that in s. 256(1)(e) Parliament intended that the shareholding of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(1) - Paragraph 256(1)(e) | 92 |
The Queen v. Canada Southern Railway Co., 86 DTC 6097, [1986] 1 CTC 284 (FCA)
An amendment to regulation 805(1) was not intended to change its meaning.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 805 | dividends, being themselves income from property, were not exempted notwithstanding their commercial connection to the recipinent's business | 334 |
Oceanspan Carriers Ltd. v. The Queen, 85 DTC 5621, [1986] 1 CTC 114 (FCTD), aff'd in part 87 DTC 5102, [1987] 1 CTC 210 (FCA)
The enactment of s. 111(8)(c) did not effect a change in substance to the Act.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Territorial Limits | non-application to previous non-resident existence | 41 |
British Columbia Forest Products Ltd. v. The Queen, 84 DTC 6391, [1984] CTC 409 (FCTD), rev'd 85 DTC 5577, [1986] 1 CTC 1 (FCA)
Semble, that it does not transgress ss. 45(2) and (3) of the Interpretation Act to refer to a subsequent amendment to a provision to establish...
Falconbridge Nickel Mines Ltd. v. Min. of Rev. (Ont.), [1981] CTC 120 (Ont.C.A.)
A provision providing that the Minister of Revenue "may" refund overpayments of taxes, was amended to read that taxes that have been overpaid...
The Queen v. Dorchester Drummond Corp. Ltd., 79 DTC 5163, [1979] CTC 219 (FCTD)
It was impermissible to infer from the enactment of subsection 18(2), which provided for the capitalization of realty taxes in situations where...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) | parking lot operator carrying on a real estate development business notwithstanding that parking lot shut down | 74 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 86 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs | 86 | |
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | 25 |
See Also
Canada (National Revenue) v. Cameco Corporation, 2019 FCA 67
In rejecting the Crown’s position that the word “audit” in the power under in s. 231.1(1)(a) to “inspect, audit or examine” encompassed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 231.1 - Subsection 231.1(1) - Paragraph 231.1(1)(a) | Minister cannot under s. 231.1(1) compel oral answers to its questions other than for aid in auditing taxpayer books and records | 339 |
| Tax Topics - Statutory Interpretation - Ejusdem Generis | 3rd word in phrase was limited by focus on other 2 words | 138 |
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | CRA’s broad interpretation of s. 231.1(1)(a) would render s. 231.1(1)(d) redundant | 172 |
Oxford Properties Group Inc. v. The Queen, 2016 TCC 204, rev'd 2018 FCA 30
In connection with rejecting an argument that it was an abuse to bump an LP interest under s. 88(1)(d) and sell the bumped LP interest to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no abuse in using 88(1)(d) bump to avoid s. 100 after 3-year s. 69(11) period | 557 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | subsequent sale part of series as it utilized the benefit of previous LP packaging and bump transactions | 387 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | purpose not to tax underlying recapture on subsequent LP unit sale | 431 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | purpose: to push down ACB of shares of sub to qualifying non-depreciable property | 489 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) | S. 100 operates only on outside basis gain | 290 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | Parliament provided safe harbour for sales after 3 years | 204 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | purpose: to preserve high outside basis through push down | 293 |
Mathieu v. The Queen, 2014 TCC 207
After rejecting a Crown submission that option surrender benefits realized by the taxpayer (which it acknowledged were not taxable under s. 7(1))...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(a) | separated wife was related | 173 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) | non-arm's length option surrender proceeds were exempted by s. 7(3)(a) | 150 |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | stock option rules more specific than employee benefits | 55 |
Black v. The Queen, 2014 DTC 1046 [at 2882], 2014 TCC 12, briefly aff'd 2014 FCA 275
In 2002, the taxpayer was resident both in Canada and the U.K. for domestic tax purposes, but by virtue of Art. 4, para. 2(a) of the Canada-U.K...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Other/Conflicting Statutes | presumption against inconsistency | 99 |
| Tax Topics - Treaties - Income Tax Conventions - Article 29 | Treaty residence not domestically applicable | 281 |
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | Treaty residence not domestically applicable | 244 |
Silicon Graphics Ltd. v. The Queen, 2001 DTC 379 (TCC), rev'd supra.
Teskey T.C.J. rejected a submission that he should look to a subsequent amendment of the Act to determine the proper interpretation of provisions...
Canadian Occidental U.S. Petroleum Corp. v. The Queen, 2001 DTC 295 (TCC)
After rejecting a submission that he should look to a subsequent version of s. 17 of the Act in light of s. 45 of the Interpretation Act, Bowman...
HSC Research Development Corp. v. The Queen, 95 DTC 225, [1995] 1 CTC 2283 (TCC)
O'Connor TCJ. noted (at p. 231) that "notwithstanding subsection 45(2), the courts have taken account of amendments in construing the amended...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127.1 - Subsection 127.1(2) - Excluded Corporation | "controlled ... indirectly" referred to de jure control prior to s. 256(5.1) | 131 |
Sameden Oil of Canada, Inc. v. Provincial Treasurer of Alberta (1993), 102 DLR (4th) 125 (Alta. C.A.)
A provision of the Alberta Corporate Tax Act requiring a taxpayer to "deliver" a return by a given date was replaced by a requirement that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(7) | 105 |
CIR v. Hang Seng Bank Ltd., [1990] BTC 482 (PC)
Lord Bridge applied the statement in Cape Brandy Syndicate v. IRC, [1921] 2 K.B. 403 at 414 "'that subsequent legislation on the same subject may...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | situs of trading business was where trades occurred | 191 |
Subsection 45(3)
Cases
Water's Edge Village Estates (Phase II) Ltd. v. Canada, 2002 DTC 7172, 2002 FCA 291
Noël J stated (at para. 47):
Counsel argued that the prospective addition of subsection 96(8) demonstrates unequivocally that the transactions in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost means original cost | 182 |
| Tax Topics - Income Tax Act - Section 254 - Subsection 254(4) | 177 | |
| Tax Topics - Income Tax Act - Section 96 | exploiting modest business asset was sufficient partnership activity | 229 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 179 |
Metro Can Construction Ltd. v. The Queen, 2000 DTC 6495, 2001 FCA 227
McDonald J.A. indicated that although Bathurst Paper Limited v. New Brunswick [1972] S.C.R. 471 indicated that subsequent amendments might be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Debtor | 51 |
See Also
Univar Holdco Canada ULC v. The Queen, 2016 TCC 159, rev'd 2017 FCA 207
After finding that the exception in s. 212.1(4) to the application of s. 212.1(1) (respecting situations where a non-resident corporation sells...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212.1 - Subsection 212.1(4) | creating a sandwich structure in order to access s. 212.1(4) was an abuse of the s. 212.1(1) anti-surplus stripping rule | 628 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | exception to an anti-avoidance provision should not be interpreted to undercut that anti-avoidance | 259 |
Articles
Jared Mackey, "The Role of Subsequent Legislative Amendments in the GAAR Analysis", 24 Can. Current Tax, January 2013, p. 37.
Subsequent amendments established current abuse (p.38)
There is a line of authority in cases involving the GAAR in which courts considered...