Cases
Canadian Imperial Bank of Commerce v. Canada, 2023 FCA 91
In connection with noting that BMO had treated an FX loss on shares not to be a loss from their disposition because the loss was deemed by s....
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.6) | s. 40(3.6) applied to deny an FX loss arising on shares | 352 |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) | s. 40(3.6) applied to capital loss on shares before it was deemed to be an FX loss by s. 39(2) | 323 |
| Tax Topics - Statutory Interpretation - Double Taxation/Deduction (Presumption Against) | no intention to create 2 capital losses out of 1 | 80 |
Canada v. Canada North Group Inc., 2021 SCC 30, [2021] 2 S.C.R. 571
In commenting on the means and includes definition of a security interest in s. 224(1.3), Côté J stated (at para. 63):
I agree with [Justice...
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| 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 Act - Section 8.1 | Parliament chose to dissociate itself from provincial law in its drafting of a provision | 229 |
Canada v. Bank of Montreal, 2020 FCA 82
On unwinding a tower structure, a Nevada subsidiary LP of BMO realized FX gains on repaying U.S.-dollar borrowings, but completely offset that...
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| Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) | former s. 39(2) extended to FX gains on s. 39(1) dispositions | 495 |
| Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.1) | s. 39(2) deeming of loss to be from FX rather than shares applied to s. 112(3.1) | 463 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit | no tax benefit as structuring was unnecessary | 144 |
Canada (Attorney General) v. Igloo Vikski Inc., 2016 SCC 38, [2016] 2 S.C.R. 80
The World Harmonized System Explanatory Note for the tariff heading 39.26 (other articles of plastics) appearing in the Schedule to the the...
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| Tax Topics - Other Legislation/Constitution - Federal - Customs Tariff Act - Schedules - General Rules for the Interpretation of the Harmonized System - Rule 2 - Rule 2(b) | good must be described in headings - even if not ultimately included therein because of their composite nature — before Rule 2 can apply | 783 |
| Tax Topics - Treaties | narrower range of interpretations where implementing a Convention | 85 |
Alexander College Corp. v. Canada, 2016 FCA 269
The ETA stated that a "’university’ means a recognized degree-granting institution or an organization that operates a college affiliated with,...
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| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - University | private college providing "associate degrees" qualified as a “university” for GST purposes | 192 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part III - Section 7 | private college granting associate degrees qualified | 146 |
Canada v. Marchessault, 2008 DTC 6496, 2007 FCA 345
The deemed year end under s. 128(2)(d) of the Act applied only to a "bankrupt" as specifically described in s. 2 of the Bankruptcy and Insolvency...
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| Tax Topics - Income Tax Act - Section 128 - Subsection 128(2) | person who made a proposal was not a bankrupt | 112 |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | CRA positions not conclusive | 51 |
Survivance v. Canada, 2007 DTC 5096, 2006 FCA 129
Noël J.A found that it followed from the fact that subsection 256(9) deemed there to be an acquisition of control of a corporation on the...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | no disposition until payment | 94 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(9) | 94 | |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(a) | asymmetry in s. 69(1)(a) language | 144 |
OSFC Holdings Ltd. v. Canada, 2001 DTC 5471, 2001 FCA 260
Before finding that s. 248(10) expanded the "common law" meaning of "series," Rothstein J.A. stated (at para. 33):
A deeming provision imports...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | significant disparity between tax benefit and commercial return from transaction | 263 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | policy against corporate loss trading | 229 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | s. 248(10) assimilates a subsequent transaction to a common-law series if it has some connection with the series and is completed in contemplation thereof | 344 |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 70 |
Placements Serco Lté v. The Queen, 88 DTC 6125, [1988] 1 CTC 213, [1988] 1 CTC 42, [1987] DTC 5425 (FCA)
After referring to the description in R. v. Verrette, [1978] 2 S.C.R. 838, at 845 of the function of a deeming provision, the Court found that a...
Canada v. Schafer, 2000 DTC 6542 (FCA)
The Court found that s. 334(1) of the ETA created an irrebuttable rather than a rebuttable presumption by deeming anything sent by first class...
Terrador Investments Ltd. v. R., 99 DTC 5358, [1999] 3 CTC 520 (FCA)
In finding that the making of an s. 93(1) election in respect of a distribution to the taxpayer of a promissory note by a liquidating U.S....
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| Tax Topics - Income Tax Act - Section 93 - Subsection 93(1) | s. 93 deeming a dividend in kind of a note to be a dividend received precluded a subsequent bad debt claim for the note | 200 |
Itt Industries of Canada Ltd. v. R., 99 DTC 5105, [1999] 2 CTC 277 (FCTD), aff'd 2000 DTC 6445, Docket: A-99-99
Subpara. (i) of the definition of "timber resource property" in s. 13(21)(d.1) started by referring to "a right or licence to cut or remove timber...
Liampat Holdings Ltd. v. The Queen, 96 DTC 6020, [1996] 1 CTC 343 (FCTD)
Cullen J. rejected a submission that the deeming of the accrual of interest pursuant to s. 17(1) created a rebuttable rather than an irrebuttable...
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| Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) | 137 | |
| Tax Topics - Income Tax Act - Section 17 - Subsection 17(1) | 75 |
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 the statement in Côté Interprétation des lois that:
"In reading a statute, one must also presume that each word, phrase,...
Derlago v. The Queen, 88 DTC 6290, [1988] 2 CTC 21 (FCTD)
The taxpayer rented out a house for many year, then changed the use to personal use so that s. 45(1) applied. However, he argued that although he...
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| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) | change of use on start of personal-use occupation | 74 |
Dunstan v. Young, Austen & Young Ltd., [1987] BTC 530 (HCJ), rev'd [1989] BTC 77 (C.A.)
"[T]he word 'include' may be used in such a definition to enlarge the natural meaning of the word defined, or to clarify it, or to introduce...
Midyette v. The Queen, 85 DTC 5565, [1985] 2 CTC 362 (FCTD)
"'The purpose of any deeming clause is to impose a meaning, to cause something to be taken to be different from that which it might have been in...
| Locations of other summaries | Wordcount | |
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| Tax Topics - Income Tax Act - Section 250 - Subsection 250(3) | 102 | |
| Tax Topics - Income Tax Act - Section 63.1 | 68 |
Merchant v. The Queen, 84 DTC 6215, [1984] CTC 253 (FCTD)
The definition of "office" in S.248(1) stated that it "means" X (as well as going to specifiy that it includes various listed positions). Reed J...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs | 118 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Office | specified amount per sitting may be sufficient | 102 |
I.R.C. v. Metrolands (Property Finance) Ltd., [1981] 1 W.L.R. 637 (C.A.), aff'd 82 BTC 8032 (HL)
At 646:
"When considering the extent to which a deeming provision should be applied, the court is entitled and bound to ascertain for what...
The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205 (FCA)
After being referred to the statement in Verrette [1978] 2 S.C.R. 838 at 844 that "in definition provisions, the word 'includes' is generally used...
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| Tax Topics - General Concepts - Onus | failure of Minister to allocate | 57 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | right to buy and resell product not a right to use | 204 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum paid irrespective of user not "royalty" | 143 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 13 |
The Queen v. Cie Imm. BCN Ltée, 79 DTC 5068, [1979] CTC 71, [1979] 1 S.C.R. 865
At 5072:
"In the context of s. 20(5), the definitions of 'disposition of property' and 'proceeds of disposition' cannot be said to be exhaustive;...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property | disposition by virtue of merger of leasehold interest and freehold | 92 |
| Tax Topics - Other Legislation/Constitution - Federal - Official Languages Act - Section 13 | 87 |
R. v. Verrette, [1978] 2 S.C.R. 838
The accused, who had danced in a public performance completely bare, was charged under the Criminal Code for the offence of being “nude in a...
Storrow v. The Queen, 78 DTC 6551, [1978] CTC 792 (FCTD)
"Where a definition section uses the word 'includes', as it does in ss.62(3), then the expression said to be defined includes not only those...
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| Tax Topics - Income Tax Act - Section 62 | 101 |
Juster v. The Queen, 74 DTC 6540, [1974] CTC 681 (FCA)
In finding that the reference in the definition of “farming” to "maintaining" of horses for racing included an operation where the care and...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Farming | the farming definition lists tags that capture a broader range of operations than that specifically referenced | 193 |
| Tax Topics - Other Legislation/Constitution - Federal - Official Languages Act - Section 13 | 26 |
Toronto General Trusts Corporation v. The Minister of National Revenue, 58 DTC 1162, [1958] CTC 223, [1958] S.C.R. 499, [1958] CTC 222
In considering what scope should be given to what then was s. 36 of The Wills Act (Ontario), Judson J. stated (p. 1167):
"The fiction should not...
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|---|---|---|
| Tax Topics - Statutory Interpretation - Provincial Law | 70 | |
| Tax Topics - Statutory Interpretation - Similar Statutes/ in pari materia | 137 |
East End Dwellings Co. Ltd. v. Finsbury Borough Council, [1952] A.C. 109 at 132
"If you are bidden to treat an imaginary state of affairs as real, you must surely, unless prohibited from doing so, also imagine as real the...
See Also
Vefghi Holding Corp. v. The King, 2023 TCC 135
In finding that, in the presence of a provision (s. 104(19)) - which deemed the taxpayer to have received a dividend some time in its taxation...
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| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(19) | connected corporation status tested at the time of actual receipt by the trust of the dividend provided that the taxation year of the corporate beneficiary including the Dec. 31 s. 104(19) designation date also straddled that time | 601 |
Fowler v Commissioners for Her Majesty’s Revenue and Customs, [2020] UKSC 22
Before going on to find that a domestic UK provision that deemed an employee to be an independent contractor for purposes of computing his income...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 3 | deeming an employee to be an independent contractor did not oust the Treaty Employment Income Article | 462 |
| Tax Topics - Treaties - Income Tax Conventions - Article 7 | UK domestic provision deeming employee to be independent contractor did not engage Art. 7 | 232 |
Fowler v HM Revenue and Customs, [2018] EWCA Civ 2544, rev'd 2020 UKSC 22
A U.K. domestic income tax provision deemed the diving activities of a South African resident in the North Sea to be the carrying on of a U.K...
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| Tax Topics - Treaties - Income Tax Conventions - Article 3 | a domestic provision deeming employment income to be from trade rendered it business profits for Treaty purposes | 517 |
| Tax Topics - Treaties - Income Tax Conventions - Article 7 | employment income deemed by domestic provision to be business profits | 138 |
Travel Document Service & Ladbroke Group International v Revenue & Customs (Rev 1), [2018] EWCA Civ 549
A British taxpayer (TDS) used a total return swap to cause its share investment in a subsidiary (LGI) to be deemed to be a loan. However, its...
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| Tax Topics - Income Tax Act - Section 83 - Subsection 83(2.1) | “main” has a connotation of importance | 239 |
Barclays Wealth Trustees (Jersey) Limited v. Commissioners for Her Majesty's Revenue and Customs, [2017] EWCA Civ 1512
In the course of describing submissions of the taxpayer’s counsel with which he ultimately agreed, Henderson LJ stated (at para. 47):
In support...
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| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | the determination of whether there is a single trust should accord with how a trust lawyer would view the matter | 626 |
Cartier House Care Centre Ltd. v. The Queen, 2015 TCC 278
Paris J rejected CRA arguments that independent contractors who provided personal care services to a B.C. for-profit residential care home,...
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| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Home Care Service | "personal care" included ADL assistance | 409 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 1 - Institutional Health Care Service | accommodation an institutional health care service | 232 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 13 | personal care services provided by independent contractors were exempted | 485 |
| Tax Topics - Excise Tax Act - Section 138 | s. 138 did not apply where the allocation of consideration among the components was apparent | 254 |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | noscitur a sociis did not apply to general phases preceding list | 206 |
| Tax Topics - Excise Tax Act - Regulations - Public Service Body Rebate (GST/HST) Regulations - Section 2 - Government Funding | funding for personal care services provided by independent contractors would be included | 265 |
Presidential MSH Corporation v. The Queen, 2015 DTC 1101 [at pp. 596-610], 2015 TCC 61
The refundable dividend tax account of the taxpayer was not reduced by amounts which it could have claimed, but failed to timely claim, as...
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| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | RDTOH not reduced by unclaimed dividend refunds | 149 |
Vocalspruce Ltd. v. Revenue and Customs Commissioners, [2014] BTC 50, [2014] EWCA Civ 1302 (English CA)
The parent company (Brixton plc) of the taxpayer (Vocalspruce) subscribed for zero coupon notes of group companies, and transferred the notes to...
Roger Dubois Inc. v. The Queen, 2014 DTC 1094 [at 3167], 2013 TCC 409, briefly aff'd 2015 CAF 235
Jorré J found that 18th or 19th century violins purchased by the taxpayer were caught by the description "antique furniture, or any other antique...
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|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(e) | "antique" means "non-recent" | 209 |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | no implied similarity requirement | 158 |
Gill v. The Queen, 2012 DTC 1261 [at at 3764], 2012 TCC 302
Subparagraph 56(1)(a)(i) provides that superannuation or pension benefits must generally be included in a taxpayer's income, "including, without...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a) - Subparagraph 56(1)(a)(i) | 112 |
Wunderlich v. The Queen, 2012 DTC 1040 [at at 2676], 2011 TCC 539 (Informal Procedure)
The taxpayer was promoted to a management position, and the expanded responsibilities prompted him to move closer to work. The Minister...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation | "new work location" does not require a change in work location | 228 |
Klotz v. The Queen, 2004 DTC 2236, 2004 TCC 147, aff'd 2005 DTC 5279, 2005 FCA 158
Bowman A.C.J. applied a statement in Maxwell on The Interpretation of Status, 12th Edition, that "the word in respect of which 'includes' is used...
Administrative Policy
13 January 2005 External T.I. 2004-0101701E5 F - Bien substitué
Before finding that the substituted property definition in s. 248(5)(b) does not apply for the purposes of s. 7(1.1), CRA referred to Verrette,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(5) - Paragraph 248(5)(b) | substituted property definition in s. 248(5)(b) does not apply for the purposes of s. 7(1.1) | 122 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.1) | s. 248(5)(b) inapplicable to s. 7(1.1) | 35 |