Canada v. Huang and Danczkay Ltd., 2000 DTC 6549, docket A-500-98, 2002 FCA 226 -- summary under Paragraph 12(1)(b)

The taxpayer, which was a real estate developer, agreed with each of three partnerships to construct and complete a MURB project and provide certain initial services essential to the project pursuant to a development agreement, including the provision of ongoing financial guarantees, in consideration for the partnership's promise to pay stipulated amounts to the taxpayer in instalments as evidenced by promissory notes and, in the case of two of the three projects, wrap-around mortgages. Rothstein J.A. found that the fact that the notes and wrap-around mortgages stated that they were "subject to" the development agreement did not establish that the right of the taxpayer to be paid did not become absolute at the time the debt instruments were made (no term of the development agreement had been identifiued to the opposite effect); and rights of set-off also were not inconsistent with the obligations to the taxpayer being absolute. Accordingly, the amounts stipulated in the debt instruments were receivable for purposes of paragraph 12(1)(b).