Cases
Irving Oil Ltd. v. The Queen, 88 DTC 6138, [1988] 1 CTC 263 (FCTD), aff'd 91 DTC 5106 (FCA)
An individual ("K.C. Irving") who controlled the taxpayer and an arm's length supplier of Middle East crude ("Socal") sought to share the...
Consolidated-Bathurst Ltd. v. The Queen, 87 DTC 5001, [1987] 1 CTC 55 (FCA)
Consolidated-Bathurst insured various risks with arm's length Canadian demestic insurers, who reinsured all but a small percentage of those risks...
Indalex Ltd. v. The Queen, 86 DTC 6039, [1986] 1 CTC 219 (FCTD), aff'd 88 DTC 6053, [1988] 1 CTC 60 (FCA)
An arrangement under which a Bermudan affiliate of the taxpayer purchased aluminium from Alcan, and then sold the aluminium to the taxpayer at a...
Edmonton Liquid Gas Ltd. v. The Queen, 84 DTC 6526, [1984] CTC 536 (FCA)
"[W]here provisions of the Income Tax Act have the obvious purpose of encouraging taxpayers to enter into an expenditure of a particular kind...
Stubart Investments Ltd. v. The Queen, 84 DTC 6305, [1984] CTC 294, [1984] 1 S.C.R. 536
"Where the facts reveal no bona fide business purpose for the transaction, s.[245(1)] may be found to be applicable depending upon all the...
The Queen v. Gelber, 83 DTC 5385, [1983] CTC 381 (FCA)
The taxpayer was not precluded from deducting capital cost allowance in respect of a portion of the purchase price paid for a motion picture film...
Don Fell Ltd. v. The Queen, 81 DTC 5282, [1981] CTC 363 (FCTD)
S.245(1) is "directed not only to sham transactions but to something less as well where the expense, although real, would unduly or artificially...
Antoine Guertin Ltée v. The Queen, 81 DTC 5268, [1981] CTC 351 (FCTD), aff'd 87 DTC 5458, [1988] 1 CTC 117 (FCA)
The taxpayer's president had the company pay substantial bonuses to its employees, and persuaded them to donate a large portion of the bonuses to...
Spur Oil Ltd. v. The Queen, 81 DTC 5168, [1981] CTC 336 (FCA)
A Bermudan affiliate of the taxpayer purchased crude oil at a price that was less than 90% of its fair market value and resold the oil to the...
The Queen v. Alberta and Southern Gas Co. Ltd., 77 DTC 5244, [1977] CTC 388 (FCA), aff'd 78 DTC 6566, [1978] CTC 780, [1979] 1 S.C.R. 36
S.66 provided favourable treatment for the deduction and taxation of capital amounts in order to encourage taxpayers to put money into resource...
Mendels v. The Queen, 78 DTC 6267, [1978] CTC 404 (FCTD)
A partnership of two dentists determined that the value of administrative services performed by them was $20,000, and 'by means of' appropriate...
McKee v. The Queen, 77 DTC 5345, [1977] CTC 491 (FCTD)
"A disbursement or expense made or incurred" does not include capital cost allowance.
The Queen v. Laidlaw Transport Ltd., 77 DTC 5091, [1977] CTC 151 (FCTD)
A fee of $61,317 which a subsidiary paid to its parent for services that the parent (primarily in the person of its shareholder and officer)...
Produits LDG Products Inc. v. The Queen, 76 DTC 6344, [1976] CTC 591 (FCA)
A company made contributions to a pension plan toward the current and past services of certain of its employees (mainly the company's principal...
The Queen v. Esskay Farms Ltd., 76 DTC 6010, [1976] CTC 24 (FCTD)
"The word 'disbursement' in common parlance means 'money paid out, an expenditure' and the word 'expense' also in common parlance means 'money out...
Sigma Exploration Ltd. v. The Queen, 75 DTC 5121, [1975] CTC 215 (FCTD)
The taxpayer, which carried out seismic surveys primarily on its own account and then sold the information so obtained to other companies, was...
Simard-Beaudry Inc. v. M.N.R., 74 DTC 6552, [1974] CTC 715 (FCTD)
The taxpayer acquired depreciable assets for a price less than their fair market value as part of a series of dividend-stripping transactions that...
J&J Hotels Ltd. v. MNR, 74 DTC 6505, [1974] CTC 670 (FCA)
The taxpayer hotel company, in order to soak up losses in a sister company ("Vernon") transferred an employee who had been washing cars on the...
The Queen v. Clark, 74 DTC 6242, [1974] CTC 305 (FCTD)
A cash-basis farmer purchased cattle from a cattle company at the end of his taxation year on the understanding that the cattle company would...
Holmes v. The Queen, 74 DTC 6143, [1974] CTC 156 (FCTD)
A 15% management fee paid by a law firm to its related administrative services company was deductible in light of a finding that genuine business...
Administrative Policy
86 C.R. - Q.37
the Consolidated - Bathurst decision confirmed RC's position that premiums paid to an off-shore captive are not deductible where there is no...