Words and Phrases - "assistance"
The Queen v. Consumers' Gas Co. Ltd., 87 DTC 5008, [1987] 1 CTC 79 (FCA)
In finding that compensation received by the taxpayer from both commercial and public customers for changing the location of its pipelines was not, in the case of receipts from the latter, “government assistance” under s. 13(7.1), Hugessen JA stated:
The key word in this text, as it seems to me, is “assistance”, which, in the context, clearly carries with it the colour of a grant or subsidy. Here the evidence is clear that payments made to Consumers' Gas by public authorities such as municipalities, Ontario Hydro and the like were made in exactly the same way and for exactly the same reasons as payments made by private businesses, that is, for the purpose of advancing the interests of the payor.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Accounting Principles | 35 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | assessment is of dollar amount | 87 |
| Tax Topics - Income Tax Act - Section 181 - Subsection 181(3) | 78 |
Consumers' Gas Co. Ltd. v. The Queen, 86 DTC 6132, [1986] 1 CTC 380 (FCTD), aff'd 87 DTC 5008, [1987] 1 CTC 79 (FCA)
Reimbursements received by the taxpayer from governmental authorities for relocating its pipelines at their request did not constitute "assistance" because it was never reimbursed for more than the costs which it incurred.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Compensation Payments | recurring compensation for moving capital assets on capital account | 105 |
The Queen v. CCLC Technologies Inc., 96 DTC 6527, [1996] 3 CTC 246 (FCA)
An agreement the taxpayer entered into with the province of Alberta concerning a coal and heavy oil project was found to have resulted in the receipt by the taxpayer of "other ... assistance" for purposes of s. 12(1)(x)(iv) given that it was impossible to characterize the agreement as an ordinary business arrangement: "A business which invested money in ventures on the basis that it could not receive any net profit if the venture succeeded, and would gain an equity interest only if the venture proved uncommercial, would not long survive." (p. 6529)
In addition, the agreement could not reasonably be considered to be designed for the purpose of the government acquiring an interest in the taxpayer's property for purposes of s. 12(1)(x)(viii) given that in the circumstances the government's contribution was in the nature of a grant, subsidy or forgivable loan instead, as described above.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Government Assistance | contribution arrangement under which the government could not generate a profit was "other assistance" | 130 |