Nature of Income

Commentary

Normally, amounts received by a taxpayer from the customers of its business will be included in the computation of its income, so that if the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Cases

Minet Inc. v. The Queen, 98 DTC 6364 (FCA)

Because the taxpayer (which conducted its business in Montreal) was not licensed to carry on an insurance brokerage business in a number of the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Leonard Pipeline Contractors Ltd. v. The Queen, 98 DTC 6134 (FCTD)

On the purchase of a business, the taxpayer agreed with the vendor that the vendor would share in the proceeds of a joint venture agreement. The...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

The Queen v. Foothills Pipe Lines (Yukon) Ltd., 90 DTC 6607 (FCA)

The taxpayer, which had incurred various expenses in respect of the second phase of a pipeline project which had not yet been constructed, was...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Ablan Leon (1964) Ltd. v. MNR, 76 DTC 6280, [1976] CTC 506 (FCA)

All the income received by the corporate taxpayer was its income, notwithstanding that - given a finding that a limited partnership which...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Perrault v. The Queen, 76 DTC 6021, [1976] CTC 65 (FCTD), aff'd 78 DTC 6272, [1978] CTC 395 (FCA)

The jurisprudence as well as departmental practice relating to waiver of dividends has established a clear distinction between the acceptance of...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Wipf v. The Queen, 75 DTC 5034, [1975] CTC 79 (FCA), aff'd 76 DTC 6059, [1976] CTC 57 [1970] S.C.R. 958

The taxpayers were members of Hutterian colonies whose profits from farming belonged to trustees, or to corporations limited by guarantee. Since...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Philp v. MNR, 70 DTC 6237, [1970] CTC 330 (Ex Ct)

The Oshawa Group pursuant to a sales incentive program paid the costs of a six-day excursion to the Bahamas of a partner ("Bermack") in a firm...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) sales incentives paid to 3rd-party employees were taxable benefits 127
Tax Topics - Income Tax Act - Section 9 - Exempt Receipts/Business incentive trip to Bahamas 132
Tax Topics - Income Tax Act - Section 9 - Expense Reimbursement 132

Minister of National Revenue v. Atlantic Engine Rebuilders Ltd., 67 DTC 5155, [1967] CTC 230, [1967] S.C.R. 477

The taxpayer was in the business of rebuiliding Ford engines, which it sold to Ford dealers. In order to secure a regular supply of rebuildable...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Timing deposits returned if future supply 152

Premium Iron Ores Ltd. v. Minister of National Revenue, 66 DTC 5280, [1966] CTC 391, [1966] S.C.R. 685, 66 DTC 5280

A mining company ("Steep Rock") appointed the taxpayer as its exclusive agent for the sale of iron ore to be mined from the deposit under Steep...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

MNR v. Gault, 65 DTC 5157, [1965] CTC 261, 65 DTC 5157 (Ex Ct)

An agreement dated 21 March 1960 between the estate of an insurance agent ("Bulley") and the taxpayer, pursuant to which the estate sold the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Lloyd Estate v. MNR, 63 DTC 1349 (Ex Ct), briefly aff'd 65 DTC 5031 (SCC)

The taxpayer acquired a mortgage at a discount, and later foreclosed on the mortgage and sold the foreclosed mortgage for a purchase price which...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Woodward's Pension Society v. The Minister of National Revenue, 62 DTC 1002, [1962] CTC 11, [1962] S.C.R. 224

In rejecting a submission that profits realized by a society incorporated under the Societies Act of British Columbia were not income to it...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Minister of National Revenue v. St. Catharines Flying Training School Ltd., 55 DTC 1145, [1955] CTC 185, [1955] S.C.R. 738

Profits earned by the taxpayer under a contract with the Crown for the training of pilots were by virtue of that contract held on terms that...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Wilson v. Minister of National Revenue, 55 DTC 1065, [1955] CTC 87, [1955] S.C.R. 352

Lands were devised by the testator to the taxpayer on the condition that the taxpayer would pay a monthly annuity to his mother. The lands were...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Canadian Fruit Distributors Ltd. v. MNR, 54 DTC 1145, [1954] CTC 284 (Ex. Ct.)

The taxpayer, which was the subsidiary of a non-profit fruit growers' non-share corporation, agreed with its parent that the parent would pay...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Dominion Taxicab Association v. Minister of National Revenue, 54 DTC 1020, [1954] CTC 34, [1954] S.C.R. 82

The appellant, a taxicab association, entered into contracts with its members when they joined the association under which the member would pay to...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Bouck v. Minister of National Revenue, 52 DTC 1090, [1952] CTC 90, [1952] 2 S.C.R. 17

The will of the taxpayer's late husband directed that the executors pay to the credit of an income account the annual net revenues from a trust...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

B & B Royalties, Ltd. v. MNR, [1940-1941] CTC 65 (Ex Ct)

The taxpayer was found to have alienated its interest in a portion of the production of oil and gas from leased lands, or the proceeds of such...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

See Also

Howard v. Commissioner of Taxation, [2014] HCA 21

The taxpayer and four others formed a joint venture to acquire, lease and sell a golf course. The taxpayer attempted to have a corporation of...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) damages not received as constructive trustee as not received qua director 183
Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) agreement assigned rights to proceeds of law suit rather than entitlement under law suit 305
Tax Topics - Income Tax Act - Section 9 - Compensation Payments damages not corporate income as not received qua director 183

Gainor v. The Queen, 2011 DTC 1317 [at 1798], 2011 TCC 442

The taxpayer had been a director of corporation ("Canam") which had been struck from the corporate registry. Unaware of Canam's dissolution, CIBC...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) 174

Wabush Iron Company Limited v. The Queen, 2009 DTC 814, 2009 TCC 239

The taxpayer, which was a member of a joint venture which produced iron pellets, had agreed with its shareholders to sell them its share of the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Morisset c. La Reine, 2008 DTC 3864, 2006 TCC 483

Chiropractic income earned by a corporation of which the taxpayer was the sole shareholder was income of the taxpayer in light of the prohibition...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Dello v. The Queen, 2003 DTC 788, 2003 TCC 392

A corporation of which the taxpayer was the sole shareholder and director was dissolved for failure to file annual returns in 1984, an application...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Whittles v. Uniholdings Ltd. (No. 3), [1995] BTC 119 (Ch. D.)

In order to lower the effective interest rate payable by it on a loan of £14,056,000, the taxpayer and its bank agreed that at the time the bank...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Computation of Profit 202

Conforbel Canada Ltée, 94 DTC 1190 (TCC)

The taxpayer, which had a cost-plus contract for the performance of construction work, discovered that it had made excess contributions to a...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Hadlee v. C.I.R., [1993] 2 WLR 696 (PC)

The taxpayer, who was a partner in a New Zealand professional accounting firm, assigned 40% of his units to the trustee of a trust for the benefit...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Honeybunch Bakeries (Saskatoon 1975) Ltd. v. MNR, 90 DTC 1549 (TCC)

The taxpayer was not required to accrue interest income on an interest-bearing obligation after it had become quite clear that no interest was...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Canpar Holdings Ltd. v. Saskatchewan (Minister of Energy and Mines) (1987), 60 Sask R 128 (C.A.)

The taxpayer, which was the co-owner along with Dome Petroleum of the operating rights to certain mineral properties, agreed to pay a percentage...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Ages v. MNR, 71 DTC 86 (TAB)

A partnership agreed to lease real estate under a lease that ran for 25 years, that provided for a yearly rental of $27,396 payable in monthly...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Morley v. Messrs. Tattersall (1938), 22 TC 51 (CA)

At the end of its relevant fiscal periods a firm of bloodstock auctioneers had on hand unclaimed balances from the auction sale of horses which,...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Administrative Policy

S2-F1-C1 - Health and Welfare Trusts

1.45 ...[P]enalties charged by a health and welfare trust for the late remittance of employer contributions would be considered incidental...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

15 September 2014 Internal T.I. 2014-0545001I7 - Grants paid to employers of reservists

Amounts that are received from the Compensation for Employers of Reservists Program by employers of reservists and by self-employed individuals...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) compensation for reservist costs 40

18 December 2013 Internal T.I. 2012-0472211I7 F - Voyages offerts par une compagnie

The corporate "Taxpayer" annually offers an annual free trip to a southern location (perhaps a Caribbean resort) to its associated brokers and...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) Caribbean sales incentive trip provided to incorporated sales reps 396
Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(d) Caribbean sales incentive trip provided to incorporated sales reps 178
Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(4) - Paragraph 67.1(4)(b) Caribbean sales incentive trip is "entertainment" 175

6 September 1994 T.I. 941083 (C.T.O. "Life Insurance Commissions:)

A commission received by a salesperson of a life insurance policy on a policy that is owned by her and on which she is obligated to pay the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

18 March 1992 T.I. (Tax Window, No. 18, p. 15, ¶1815)

The difference between the amount of GST collected on taxable sales and the amount of GST required to be remitted under the quick method of...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

27 August 1991 Memorandum (Tax Window, No. 8, p. 22, ¶1414)

Where a tenant makes an interest-free loan to a landlord in order to pay less than fair market value rent, a benefit equal to the amount of the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

6 May 1991 T.I. (Tax Window, No. 3, p. 27, ¶1240)

Canadian beneficiaries of a U.K. trust who apply for a refund of 45% U.K. tax to which the trust income was subject, will be treated as earning...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.