Illegality

Table of Contents

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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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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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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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Locations of other summaries Wordcount
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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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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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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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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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...

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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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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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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...

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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,...

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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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