Words and Phrases - "syndicate"
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.
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 | |
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| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 147 |