Quincaillerie Laberge Inc. v. The Queen, 95 DTC 155 (TCC) -- summary under Disposition

A payment of $575,000 to the taxpayer by a debtor in default in consideration for an extension of the due date of the loan and the taxpayer's agreement to waive its current rights to take action on the loan, did not represent proceeds of disposition of property. Under the Quebec Civil Code, the obligation was not extinguished, but rather amended as to its term. Garon TCJ. noted (at p. 162) that the definition of "disposition" in what now is s. 248(1) "shows that a 'disposition of property' under this section entails a fundamental transfer of an interest in a property through the use of the words 'redeemed', 'canceled' and 'settled'" and that "the concept of 'disposition of property' does not seem to me more comprehensive or more extensive than that pertaining to the disposition of an interest [for purposes of the Civil Code]".