Robert Bédard Auto Ltée. v. MNR, 85 DTC 643, [1985] 2 CTC 2354 (TCC) -- summary under Effective Date

By services, 28 November, 2015

Before going on to find that the taxpayer had disposed of property on the effective date for a lease-purchase agreement in which land and building was leased by the taxpayer to the lessee for five years with an obligation to purchase within that period of time for a specified price, Tremblay T.C.J. found that the date of sale of the land and building was the subsequent date when the lease was terminated by purchase and stated (at p. 648):

"Consequently, where the parties have agreed for a future time, it cannot be decided under civil law that the transaction took place at a time other than the one determined and executed by them. A bi-lateral promise does not have the effect of making the promisor-purchaser an owner; it merely allows him to become one when the contract of sale is executed or when the judgment in lieu of contract is rendered."

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