Estate of the late Donald Mills v. The Queen, 2010 DTC 1301 [at at 4078], 2010 TCC 443, aff'd 2011 DTC 5124, 2011 FCA 219 -- summary under Subparagraph 20(1)(p)(i)

By services, 28 November, 2015

The taxpayer exchanged shares for a promissory note. Under s. 84.1(1)(b), the receipt of the promissory note resulted in a deemed dividend. The issuer of the note defaulted. Sheridan J. cited Terrador Investments (99 DTC 5358) for the proposition that, once the note was deemed to be a dividend paid to the taxpayer, it was no longer a "debt owing." Therefore, the default could not give rise to a bad debt deduction under s. 20(1)(p)

Topics and taglines
Topic
Income Tax Act - s. 20(1)(p)(i)
Tagline
no bad debt if deemed dividend
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
336181
Extra import data
{
"field_legacy_header": "<strong><em>Mills v. The Queen</em></strong>, 2010 TCC 443, 2010 DTC 1301 [at 4078], aff'd 2011 DTC 5124, 2011 FCA 219 <strong>[no bad debt if deemed dividend]</strong>",
"field_override_history": false,
"field_sid": "",
"field_topic_category": ""
}