Amount

Table of Contents

Amount
Cases(3)
See Also(3)
Administrative Policy(4)

Cases

Gaynor v. The Queen, 91 DTC 5288, [1991] 1 CTC 470 (FCA)

Pratte J.A. found in light of the principle that Canadian currency "is the only monetary standard of value known to Canadian law", that it was inappropriate to measure a capital gain from the disposition of U.S. securities by first computing the profit in U.S. dollars and multiplying by the exchange rate prevailing at the time of disposition.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) different FX spot rates for cost and proceeds 151

Midwest Oil Production Ltd. v. The Queen, 82 DTC 6092, [1982] CTC 107 (FCTD), aff'd 83 DTC 5304, [1983] CTC 338 (FCA)

A crude oil royalty was routinely expressed in money and was, thus, clearly an "amount".

MNR v. Burns, 58 DTC 1028, [1958] CTC 51 (Ex Ct), briefly aff'd 59 DTC 1328 (SCC)

The taxpayer, when it sold cottages it had constructed, usually accepted second mortgages from the purchasers which it would subsequently sell at a substantial discount from their face amount. In finding that s. 85B(1)(b) of the pre-1972 Act required the principal of the second mortgages to be included in the computation of the taxpayer's income at the time of the sale, Cameron J. noted that because the second mortgages were expressed in terms of money, it was that amount which was to be included in income in light of the definition of "amount" in s. 139 of the pre-1972 Act.

See Also

Gibson v. The Queen, 95 DTC 749, [1996] 1 CTC 2105 (TCC) (Informal Procedure)

The taxpayer transferred his equity in a house to his former spouse in satisfaction of arrears of alimony or maintenance owing to her of $19,946. In finding that this constituted a payment of such arrears, O'Connor TCJ. stated (at p. 752) that "payment in kind, provided there has been an agreement or a binding determination of the value in money of the object given, will suffice ... . To do otherwise would seem to run counter to the definition of 'amount' in subsection 248(1)".

Locations of other summaries Wordcount
Tax Topics - General Concepts - Payment & Receipt payment in kind if agreement as to the amount 81
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(b) 81

Tyoxide Canada Inc. v. The Queen, 93 DTC 1499, [1994] 1 CTC 2569 (TCC)

The entitlement of a taxpayer to a Quebec tax credit came within the broad definition of "amount".

The Queen v. Consumers' Co-Operative Refineries Ltd., 87 DTC 5409, [1987] 2 CTC 204 (FCA)

allocation in proportion to patronage could be made at a zero rate

The references in s. 135(2) to allocations being made at an appropriate "rate" include a nil allocation.

Administrative Policy

10 October 2003 Roundtable, 2003-0029995 F - Amount of Stock Dividend

Also released under document number 2003-00299950.

With reference to the situation where a corporation governed by the CBCA declares and pays a stock dividend on its common shares by issuing 100 preferred shares with a redemption price of $100,000 and the amount added by the directors to the stated capital of the preferred shares is $1, CCRA noted that:

"Many authors are of the view that under the CBCA, it is possible to pay stocks dividends as described above and add a nominal amount to the stated capital of shares ... . In general, the CCRA does not challenge the legal validity of the stated capital of shares of a corporation incorporated under the CBCA, where a nominal amount has been added to the stated capital of the shares issued by the corporation, as in the situation above. Consequently ... the amount of the dividend ... would generally be considered to be $1 ... ."

17 September 2001 External T.I. 2001-0098635 F - Spin-off - T5

amount of dividend-in-kind (e.g., a spin-off that does not qualify under s. 86.1) is the FMV of the distributed shares

CCRA noted that if a spin-off reorganization of a US corporation did not qualify under s. 86.1, it would constitute a dividend-in-kind rather than a stock dividend, so that the amount of the dividend would be the FMV of the distributed shares.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 86.1 - Subsection 86.1(2) general overview re US spin-off 28

90 C.R. - Q49

Where in accordance with the applicable corporate law the declared amount of a stock dividend is a nominal amount of money, that will constitute the amount of the dividend notwithstanding that the shares comprising the stock dividend are redeemable for a higher amount.

IT-67R3 "Taxable Dividends from Corporations Resident in Canada"

Includes discussion of valuation of dividends in kind.

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