MNR v. Enjay Chemical Co. Ltd., 71 DTC 5293, [1971] CTC 535 (FCTD) -- summary under Subsection 246(1)

By dwpv, 28 November, 2015

In finding that a forgiveness of a portion of the trade indebtedness owing by the taxpayer to a U.S. affiliate would have given rise to a taxable benefit under s. 137(2) of the pre-1972 Act, Walsh J. stated (p. 5304):

"I believe that the words 'transactions of any kind whatsoever' are broad enough to cover the forgiveness of debt which took place in this case in that Esso International Inc. therefore conferred a benefit on respondent and this despite the fact that the rebate was made for a legitimate purpose and not with an intention to avoid or evade taxes."

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