Cases
Canada v. Colitto, 2020 FCA 70
The expansive effect given by the Tax Court to the exclusion from director’s liability in s. 227.1(2) had the effect of reading two words into...
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| Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(1) | a director’s s. 227.1 liability can flow through to a transferee under s. 160 well before the s. 227.1(2) claim conditions have been met | 403 |
| Tax Topics - Excise Tax Act - Section 323 - Subsection 323(2) | director's liability arises before procedures are taken against the corporation | 298 |
Barejo Holdings ULC v. Canada, 2020 FCA 47
The proposition that a note could not be a debt obligation because the amount to be paid was linked to the value of a portfolio would effectively...
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| Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) - Paragraph 94.1(1)(a) | the amount payable under a “debt” for s. 94.1(1)(a) purposes need not be crystallized until maturity | 692 |
| Tax Topics - Statutory Interpretation - Consistency | presumption of consistent expression is not absolute | 252 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract | 3 tests for what constituted debt under s. 94.1(1)(a) | 300 |
Loblaw Financial Holdings Inc. v. Canada, 2020 FCA 79, aff'd 2021 SCC 51
At issue was whether a Barbados bank subsidiary (Glenhuron ) of the taxpayer, which used equity funds received from its Canadian parent to invest...
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| Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Business - Paragraph (a) | a Barbados bank sub conducted its business of investing in short-term debt principally with arm’s length persons | 602 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | receipt of equity funds from parent was not part of Barbados bank’s business | 188 |
| Tax Topics - Statutory Interpretation - Drafting Style | no additional requirements should be inferred in legislation drafted with “mind-numbing detail” | 172 |
| Tax Topics - General Concepts - Separate Existence | subsidiary did not manage its funds on behalf of parent | 161 |
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Foreign Accrual Property Income | fundamental purpose of FAPI is to capture passive income | 164 |
Lawyers’ Professional Indemnity Company v. Canada, 2020 FCA 90
Before going on to indicate that the expansive interpretation of s. 149(1)(d.5) submitted by the taxpayer would have the effect of making it...
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| 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 - Interpretation Act - Section 14 | marginal notes may be considered as part of the interpretive process | 96 |
| Tax Topics - Statutory Interpretation - Consistency | presumption of the same meaning | 78 |
Canada (National Revenue) v. Cameco Corporation, 2019 FCA 67
CRA sought to compel Cameco to submit 25 listed employees of it and subsidiaries to CRA interviews. Rennie JA found that s. 231.1(1)(d) was...
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| 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 - Interpretation Act - Subsection 45(2) | interpretation informed by legislative amendment narrowing the wording | 58 |
Canada (National Revenue) v. Cameco Corporation, 2017 FC 763, aff'd 2019 FCA 67
After indicating that the Minister's expansive interpretation of s. 231.1(1)(a) had the effect of rendering s. 231.1(1)(d) redundant, McVeigh J...
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| Tax Topics - Income Tax Act - Section 231.1 - Subsection 231.1(1) - Paragraph 231.1(1)(d) | s. 231.1(1)(d) does not accord CRA an unfettered right to interview taxpayer personnel | 463 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 95 - Subsection 95(1) | unfettered CRA interview right would undercut Rules and proportionality principle | 262 |
Canada (National Revenue) v. Thompson, 2016 SCC 21, [2016] 1 S.C.R. 381
Before finding that CRA was precluded from requiring an Alberta lawyer to provide detailed accounts receivables listings for his clients on...
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| Tax Topics - General Concepts - Solicitor-Client Privilege | exclusion for accounting records was invalid even where CRA demands related to enforcement action against the lawyer | 540 |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | Hansard indicated an intent for an amendment to trench on privilege | 107 |
| Tax Topics - Statutory Interpretation - Speaking in vain | presumption against the legislature using redundant words so as to speak in vain | 49 |
Caithkin, Inc. v. Canada, 2015 FCA 118
The Court affirmed a finding below that a company which placed children in foster homes for children's aid societies and assisted the foster...
John Doe v. Ontario (Finance), 2014 SCC 36, [2014] 2 S.C.R. 3
In response to the appellant's access to information request under Ontario Freedom of Information and Protection of Privacy Act ("FIPPA"), the...
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| Tax Topics - Other Legislation/Constitution - Federal - Access to Information Act - Section 21 - Subsection 21(1) - Paragraph 21(1)(a) | exclusion for "advice or recommendations" applied to draft policy papers | 202 |
Envision Credit Union v. The Queen, 2010 DTC 1399 [at at 4585], 2010 TCC 576, aff'd 2012 DTC 5055 [at 6842], 2011 FCA 321, aff'd 2013 DTC 5144 [at 6275], 2013 SCC 48
The taxpayer unsuccessfully argued (ca. para. 65) that s. 87(2) was intended to constitute a complete code as to the consequences of an...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E | 100 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | incorrect position was thoughtfully taken | 63 |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(4.3) | 52 |
Canada v. Remai, 2009 DTC 5188 [at at 6257], 2009 FCA 340
In rejecting an interpretation of the Trial Judge that indicated that s. 251(1)(c) would not apply in any identifiable circumstance, Evans, J.A....
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| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no abuse in controlling funds established | 159 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | providing a favour is consistent with arm's length dealing | 222 |
A.Y.S.A. Amateur Youth Soccer Association v. Canada (Revenue Agency), 2007 DTC 5527, 2007 SCC 42, [2007] 3 S.C.R. 217
Rothstein J. refused to give an expansive interpretation to what was charitable in the context of a submission that a sports organization should...
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| Tax Topics - Income Tax Act - Section 149.1 - Subsection 149.1(1) - Charitable Organization | 158 | |
| Tax Topics - Statutory Interpretation - Drafting Style | textual approach where precise drafting | 70 |
| Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius | 144 |
Placer Dome Canada Ltd. v. Ontario (Minister of Finance), 2006 DTC 6532, 2006 SCC 20, [2006] 1 S.C.R. 715
After noting that the interpretation advanced by the taxpayer had the effect of making a statutory definition of "hedging" redundant (as such...
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| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | shifting CRA position could not be relied upon except to evidence ambiguity | 79 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | residual presumption in favour of the taxpayer | 133 |
| Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(1) - Paragraph 1204(1)(b) | cash-settled derivatives had the effect of fixing mine production] | 453 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges | “hedging “ includes cash settled derivatives including options | 461 |
| Tax Topics - Statutory Interpretation - Regulations/Statutory Delegation | addition of regulation did not significantly expand scope of tax | 264 |
Ray v. Canada, 2004 DTC 6028, 2004 FCA 1
Sharlow J.A. reversed a finding of the Tax Court that the words 'as recorded by a pharmacist' in s. 118.2(2)(n) could be ignored stating (at p....
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| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(n) | 128 | |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Act - Section 18.24 | 66 |
Canada (National Revenue) v. Kitsch, 2003 DTC 5540, 2003 FCA 307
S.231.2(1)(a) of the Act, which referred to a right of the Minister to require the production of "any information", was found not to be restricted...
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| Tax Topics - Income Tax Act - Section 231.2 - Subsection 231.2(1) | 95 | |
| Tax Topics - General Concepts - Solicitor-Client Privilege | 40 |
Markevich v. Canada, 2003 DTC 5185, 2003 SCC 9, [2003] 1 S.C.R. 94
The Court rejected a submission of the Crown that had the effect of adding the words "at any time" to the provision in question.
Montgomery v. Minister of National Revenue, 99 DTC 5186, [1999] 2 CTC 196 (FCA)
Rothstein J.A. found that to infer that the requirement in s. 8(1)(I)(i) that professionals be "recognized" by statute meant that a statute must...
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| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(i) - Subparagraph 8(1)(i)(i) | 125 |
GSW Appliances Ltd. v. R., 98 DTC 6010, [1998] 1 CTC 335 (FCA)
In responding to the taxpayer's submission that "the use of the word 'encore' in conjunction with 'ou' in paragraph 20(1)(gg), where the English...
Bolton v. The Queen, 96 DTC 6413 (FCA)
The taxpayer argued that his assessment should be vacated because the Minister failed to act with all due dispatch to reconsider his assessment. ...
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| 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 | 95 |
Extendicare Health Services Inc. v. MNR, 87 DTC 5404, [1987] 2CTC 179 (FCTD)
At 5407:
"It has been recognized as a 'settled canon of construction' that 'a statute ought to be so construed that, if it can be prevented, no...
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| Tax Topics - Income Tax Act - Section 246 - Subsection 246(2) | 29 |
Shell Canada Resources Ltd. v. MNR, 84 DTC 6129, [1984] CTC 169 (FCA)
An interpretation was preferred which avoided rendering an exception to an exemption provision redundant.
The Queen v. Savage, 83 DTC 5409, [1983] CTC 393, [1983] 2 S.C.R. 428
An interpretation was avoided which would have rendered redundant the exclusion from income under s. 56(1)(n), for the first $500 of prize money,...
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| Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(n) | award to employee for passing a difficult exam relevant to her qualifications was a "prize for achievement" | 83 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | taxable s. 6 benefit need not be remuneration for services | 85 |
Goyer Estate v. The Queen, 78 DTC 6159, [1978] CTC 205 (FCTD)
Reference was made to the principle that "'a court of law is bound to proceed on the assumption that the legislature is an ideal person that does...
See Also
Hancock & Anor v Revenue and Customs, [2019] UKSC 24
The taxpayers relied on a literal interpretation of provisions to rely on proposition that it had avoided tax on a capital gain on the sale of...
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| Tax Topics - Statutory Interpretation - Absurdities | Luke principle that a stained interpretation can be adopted to implement clear Parliamentary intention | 141 |
Cascades Inc. v. The Queen, 2008 DTC 2387, 2007 TCC 730
In rejecting the Crown interpretation of s. 40(3.5)(c), Lamarre J. noted that the interpretation had the effect of making the stipulation therein...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.5) | 237 |