'The taxpayer received two cash payments of $10,000 and $25,000 on an interest-bearing promissory note for $525,000 owing by an arm's length debtor. The payments were found by Mogan J not to have been appropriated by the debtor as between interest or principal, and to have been applied by the taxpayer to principal. Mogan J found (at para. 11) that the payments were of interest rather than of principal on the basis of the doctrine that "in the absence of any appropriation made by the debtor, the creditor may direct his payment to be applied as he thinks fit."
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creditor may apply payment as it determines if debtor does not
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
333001
Extra import data
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"field_legacy_header": "<strong><em>Fleishman v. The Queen</em></strong>, 98 DTC 1836, Docket: 97-1012-IT-I (TCC) (Informal Procedure) <strong>[creditor may apply payment as it determines if debtor does not]</strong>",
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"field_legacy_header": "<strong><em>Fleishman v. The Queen</em></strong>, 98 DTC 1836, Docket: 97-1012-IT-I (TCC) (Informal Procedure) <strong>[creditor may apply payment as it determines if debtor does not]</strong>",
"field_override_history": false,
"field_sid": "",
"field_topic_category": "seealso"
}