Words and Phrases - "syndicate"
Kalthoff v. The Queen, 90 DTC 6378, [1990] 1 CTC 336 (FCTD), aff'd 92 DTC 6001 (FCA)
A finder's fee and a commitment fee paid by the taxpayer in respect of a loan were non-deductible because the loan was made to a corporation which he had incorporated rather than to him personally.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 147 |
Besse v. Minister of National Revenue, 99 DTC 5275, [1999] 3 CTC 52 (FCA)
In finding that the taxpayer and other investors who made an investment in a building were a syndicate for purposes of s. 20(1)(e), Rothstein J.A. referred, with approval to the following definition appearing in Romano v. MNR, 66 DTC 490, and 500 (T.R.B.):
"Any group of persons who have agreed to pool their resources of money or of specific assets for some common purpose."
He went on to find that various expenses including a commission, mortgage fees and a prospectus preparation fee qualified as expenses of the syndicate rather than the promoter because they became payable only if the closing occurred, i.e., if the syndicate was formed.