Colubriale c. La Reine, 2006 DTC 2577, 2004 TCC 578 -- summary under Subsection 15(1)

By services, 28 November, 2015

After finding that a shareholder benefit was conferred on the taxpayer when he transferred a property to a corporation of which he was majority shareholder for a sale price 50% higher than the property's fair market value, Angers J. stated (at p. 2582):

"Under that case law, the application of subsection 15(1) of the Act does not require an intent to confer a benefit on the shareholder. It is enough that the shareholder knew or should have known, given the facts in the case, that he was receiving a benefit further to the transaction at issue ... . The appellant and his accountant made no effort to determine the property's fair market value prior to the transfer."

Topics and taglines
Tagline
"ought to have known" rather than "intent" standard
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
334368
Extra import data
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