Cases
Le Groupe PPP Ltée v. The Queen, 2017 CCI 2
A Quebec company (“PPP”) through car dealers offered motor vehicle replacement “warranties,” which, in the event of the loss of the...
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| Tax Topics - Excise Tax Act - Section 175.1 | “warranties” funding the incremental cost of a new vehicle after complete loss of old vehicle likely were insurance policies and were not re quality, fitness or performance | 345 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | payer of auto “warranty” claim did not benefit from the auto supply | 277 |
Durocher v. The Queen, 2016 CAF 299
A financial institution, which was controlled by a non-resident, acquired an option to subscribe at a future date for the majority of the equity...
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| Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) | option valid notwthstanding that its exercise in full by holder would be illegal | 315 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | Tax Court can review validity of contract in reviewing assessment | 123 |
Hôpital Santa Cabrini v. The Queen, 2016 CAF 207
The appellant (the “Hospital”), which had a shortage of nurses on staff and contracted with three independent personnel-services agencies (the...
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| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - 6 | a hospital which contracted for the services of nurses employed by a personnel-services agency was receiving a taxable supply | 219 |
| Tax Topics - Income Tax Act - Section 180 - Subsection 180(3) | contractual interpretation question subject to Housen standard | 54 |
Livent Inc. v. Deloitte & Touche, 128 OR (3d) 225, 2016 ONCA 11
Deloitte was unsuccessful in arguing that it was not liable to the receiver for a public company (Livent), for failure to detect the fraudulent...
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| Tax Topics - General Concepts - Negligence and Fiduciary Duty | auditors liable for failure to detect the company’s own fraud effected through its senior management | 220 |
Hedges v. Canada, 2016 FCA 19
The zero-rating of controlled drugs in Sched. VI, Part I, s. 2(d) would apply to dried marihuana if it is viewed as a drug which may only be sold...
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| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part I - 2 | authorizations to possess marihuana were not sale exemptions | 232 |
| Tax Topics - Statutory Interpretation - Headings | heading did not contemplate illegal drugs | 100 |
Envision Credit Union v. Canada, 2013 DTC 5144 [at 6275], 2013 SCC 48, [2013] 3 S.C.R. 191
The taxpayer ("Envision") was formed on the amalgamation under the Credit Union Incorporation Act (B.C.) (the "CUIA") of two credit unions. S....
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| Tax Topics - General Concepts - Separate Existence | 135 | |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(1) | 305 |
Richstone v. MNR, 72 DTC 6232, [1972] CTC 265 (FCTD), briefly aff'd 74 DTC 6129 (FCA)
In rejecting an argument that a payment for a non-compete covenant was not taxable under what now is s. 6(3)(d) because the covenant was...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) - Paragraph 6(3)(e) | 70 | |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(3) | 208 |
Continental Bank Leasing Corp. v. Canada, 98 DTC 6505, [1998] 2 S.C.R. 298
There was no dispute that the participation by the taxpayer, as a partner, in a partnership for a four-day period resulted in a breach by its...
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| Tax Topics - General Concepts - Substance | question of constructing the genuinely-reflective documents | 204 |
| Tax Topics - Income Tax Act - Section 96 | 5 day partnership with tax motivation | 165 |
Bow River Pipe Lines Ltd. v. Canada, 97 DTC 5385 (FCA)
A wholly-owned subsidiary ("Lone Rock") of the taxpayer held a 99.9% limited partnership interest in a partnership between Lone Rock and a...
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| Tax Topics - General Concepts - Transitional Provisions | 64 | |
| Tax Topics - Income Tax Act - Section 96 | 195 |
Cooper v. The Queen, 88 DTC 6525, [1989] 1 CTC 66 (FCTD)
In finding that the making of an interest-free loan by executors in breach of their duties under provincial law did not give rise to a benefit to...
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| Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) | interest-free loan | 65 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | interest-free loan | 69 |
Curlett v. MNR, 61 DTC 1210 (Ex Ct), briefly aff'd 62 DTC 1320, [1967] CTC 62, [1967] S.C.R. 280
The taxpayer regularly made mortgage loans at a discount and then sold them for their face amount to his company. In dealing with a submission...
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| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Loans | 50 |
See Also
Uber Canada Inc. v. ARQ, 2016 QCCS 2158, aff'd 2016 QCCA 1303
The ARQ obtained a search warrant for searching an Uber Canada office in Montreal. In order to be granted the search warrant, the ARQ employee...
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| Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1.1) | Uber drivers, as operators of “taxi” businesses, likely were required to register for QST | 268 |
| Tax Topics - Income Tax Act - Section 231.3 - Subsection 231.3(3) | it was reasonable for ARQ on a search to seize smart phones and laptops to make subsequent complete copies | 416 |
| Tax Topics - Other Legislation - Constitution Act, 1982 - Section 8 | seizure of computers' containing personal information was the only practicable approach | 132 |
Durocher v. The Queen, 2016 DTC 1013 [at 2584], 2015 TCC 297, aff'd 2016 CFA 299
A financial institution, which was controlled by a non-resident, acquired an option to subscribe at a future date for the majority of the equity...
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| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | potential illegality of an option to acquire control of a private corporation did not nullify the option, so that the corporation was not a CCPC | 447 |
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share | potential illegality of 3rd-party option to acquire control of a subsidiary corporation did not nullify the option, so that the subsidiary was not a CCPC | 201 |
McLarty v. The Queen, 2014 DTC 1162 [at 3556], 2014 TCC 30
On December 31, 1993, the taxpayer and 21 other signatories to a joint venture acquired rights to exploit seismic data. Under the terms of the...
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| Tax Topics - General Concepts - Agency | participations contrary to agreement were disregarded | 111 |
| Tax Topics - General Concepts - Sham | sham cannot apply to just part of transaction | 145 |
| Tax Topics - General Concepts - Tax Avoidance | sham cannot apply to just part of transaction | 145 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | revenues 10% of interest | 186 |
| Tax Topics - Income Tax Act - Section 67 | leveraged purchase of seismic data at arm's length was presumptively reasonable | 296 |
Richter & Associates Inc v. The Queen, 2005 TCC 92
In rejecting a submission that the trustee for a bankrupt company was not authorized by the Bankruptcy and Insolvency Act to engage in a...
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| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Business | litigation support services provided by trustee for bankrupt financial institution were an "undertaking" | 289 |
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(2) | allocation between costs incurred by trustee in bankruptcy for bankrupt financial institution to provide litigation services to creditors, and costs incurred in connection with its action qua trustee | 392 |
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(5) | allocation between own suit and litigation support | 77 |
| Tax Topics - Excise Tax Act - Section 141.1 - Paragraph 141.1(3)(b) | action brought by trustee for bankrupt financial institution deemed to be not in course of commercial activity | 200 |
| Tax Topics - Excise Tax Act - Section 265 - Subsection 265(1) - Paragraph 265(1)(f) | trustee's own suit and litigation support activity were related | 295 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | litigation support services provided by trustee for bankrupt financial institution were an "undertaking" | 286 |
Canada v. Libra Transport (BC) Ltd., [2001] GSTC 57, Docket: 98-2151-GST-G, aff’d 2002 FCA 347
In the course of finding that a trucking comapny was providing insurance to trucking operators as agent rather than on its own account, Bowie J...
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| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | trucker presumed not to be an unlicensed insurer | 216 |
| Tax Topics - General Concepts - Agency | trucker presumed not to be an unlicensed insurer | 167 |
Wallsten v. The Queen, 2001 DTC 215 (TCC) (Informal Procedure)
The taxpayer entered into a contract with Sun Life to provide sales services as an independent contractor. The taxpayer then agreed with a company...
Bernier v. The Queen, 97 DTC 317 (TCC)
The taxpayer's employer issued employee stock options to the taxpayer and others. Later in the same year, the Quebec Securities Commission...
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| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) | 119 |
Cox v. The Queen, 96 DTC 1690 (TCC)
The fact that a transfer of property from the taxpayer's spouse to the taxpayer was void against the trustee in bankruptcy of the spouse did not...
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| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | 60 |
Lemoine v. The Queen, 96 DTC 1655 (TCC)
A loan made by a corporation to its individual shareholder was subject to s. 15(2) notwithstanding that the Companies Act (Quebec) prohibited a...
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| Tax Topics - Income Tax Act - Section 15 - Subsection 15(2) | 80 |
Samuel Wuslich v. Minister of National Revenue, 91 DTC 704, [1991] 1 CTC 2473 (TCC)
Because the Province of Saskatchewan did not permit the taxpayer to carry on the practice of orthodontics through a corporation, income which his...
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| Tax Topics - Treaties - Article 7 | 99 |
Administrative Policy
2001 Canadian Tax Foundation Roundtable, 2001-0092495
Notwithstanding the Wallsten decision, the CCRA will not accept that insurance agents or realtors can transfer their commission income to a...
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| Tax Topics - General Concepts - Tax Avoidance | 37 |
3 April 1996 Memorandum 952293
Respecting a spousal trust that was not formally varied before assets were distributed to non-spousal beneficiaries, the Directorate indicated...
21 March 1991 Memorandum (Tax Window, No. 1, p. 14, ¶1162)
Fishing income was earned by corporations to which fishermen had leased their fishing licences, rather than by the fishermen personally,...
31 May 1990 T.I. (October 1990 Access Letter, ¶1489)
RC generally would be reluctant to give its assent to a transaction prohibited by the Quebec Companies Act.
Articles
Marshall Haughey, "Issuing Shares for a Promissory Note", 24 Can. Current Tax, May 2014, p. 85.
Prohibition by jurisdiction (pp. 85-6)
[I]n Saskatchewan, Manitoba, New Brunswick, and Newfoundland…a promissory note cannot be given as...
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| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Paid-Up Capital | 664 |