Canada v. Larsen, 99 DTC 5757 (FCA) -- summary under Paragraph 12(1)(g)

By services, 28 November, 2015

The taxpayer and his three siblings gave a lumber company the right to enter their land to remove timber during a five-month period for consideration of $70 per cubic metre of timber removed.

In finding that the lump-sum payment received by the taxpayers was not an income receipt, Noël J.A. stated ( at p. 5760) that "the case law has consistently excluded from the ambit of 12(1)(g) receipts arising from a one-time contract for the removal of timber".

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