Subtopics
Cases
Bennett and White Construction Co. v. Minister of National Revenue, 49 DTC 514, [1949] CTC 1, [1949] S.C.R. 287, [1949-1950] DTC 514
Before finding that guarantee fees were non-deductible by virtue of s. 6(b) of the Income War Tax Act, Locke J. noted that that provision did not appear in the Act of 1917 but was enacted in 1923, and that it was not taken from the English Act. He also noted that "while the expression 'any payment on account of capital' is capable of meaning any return of capital, I think it obvious that this cannot have been intended since no statutory prohibition of deducting amounts so paid could be required" (p. 516).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures | guarantee fees paid on construction financing were on capital account | 82 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | guarantee payments not interest | 56 |