Words and Phrases - "goods"
18 July 2002 Internal T.I. 2002-0135177 F - TRANSPORT DE MARCHANDISES
The Directorate indicated that the expression "goods transport" does not refer solely to the transport of goods intended for sale, and included the transport of mail, but that the transport of money or securities by armoured truck was not included.
17 May 2022 IFA Roundtable Q. 3, 2022-0926191C6 - Meaning of "goods" under 95(3)(b)
A wholly-owned foreign affiliate (“FA”) of a corporation resident in Canada (“Canco”) provides marketing services for FMV fees to Canco respecting the sale of Canadian residential condominiums by Canco in the course of its Canadian business. Does real estate inventory, such as the Canco condos, held for sale in the regular course of business qualify as “goods” for purposes of s. 95(3)(b) so that, in this case, s. 95(3)(b) would oust the application of s. 95(2)(b) to the services income of FA?
CRA referred to the statement in Canadian Wirevision that “goods … is used in the common parlance of merchandise or wares, or, to put it in legal jargon, tangible moveable property” and to various dictionary definitions generally referencing “all tangible, moveable, personal property intended for sale,” Furthermore, CRA’s view that residential condominiums, being real estate, are not “goods” under s. 95(3)(b) was consistent with the balance of the wording of s. 95(3) – for instance s. 95(3)(a) excluded the transportation of goods.
Accordingly, if no other exclusions are met, s. 95(2)(b) would apply to services provided in connection with the sale of real estate inventory, including residential condominiums.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(b) | s. 95(3)(b) exclusion unavailable where foreign sub’s services were the marketing of condo sales by Canco | 49 |
Canadian Wirevision Ltd. v. The Queen, 79 DTC 5101, [1979] CTC 122 (FCA)
A cable television company argued unsuccessfully that it was processing goods for resale when it processed T.V. signals for transmission to its subscribers. Although electricity can be bought and sold as a commodity or "good", in this situation the television signals would not be referred to in common parlance as goods. In addition, the contracts with its subscribers indicated that it was supplying services rather than goods to them.