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9 August 2023 External T.I. 2023-0979431E5 - CEDOE - "costs incurred by a person" -- summary under Paragraph (d)

BCO will be issuing flow-through shares to fund exploration work. A second company (ACO), which is wholly owned by the controlling shareholder of BCO, provides geophysical services to its customers, including BCO.

Would any portion of the payments made by BCO to ACO for ACO's services be considered exploration and development overhead expense (CEDOE) so that such portion would be excluded from Canadian exploration expense (CEE) pursuant to ITA s. 66(12.6)(b) and Reg. 1206(4.2) and, thus, could not be renounced by BCO to its flow-through share investors?

By services, 2 October, 2017

Lewski v Commissioner of Taxation, [2017] FCAFC 145 -- summary under Incurring of Expense

On June 30, 1999, a trust of which the taxpayer was a beneficiary had a 40% (later reduced to 2%) interest in a syndicate (that entered into an agreement to purchase an aged care facility in consideration for a “Settlement Amount” of $1.74 million to be paid on the settlement date (being the date of completion of a contemporaneous purchase of the business at the facility, slated to be October 31, 1999), with provision being made for further post-settlement amounts totalling $14.5 million. S. 8-1 of the Income Tax Assessment Act 1997 (Cth) provided:

6 December 2016 External T.I. 2015-0589041E5 F - Frais médicaux payés d’avance - prepaid medical expenses -- summary under Paragraph 118.2(2)(a)

What impact does the timing of payment of medical expenses have on the computation of the medical expense tax credit ("METC") in s. 118.2(1), e.g., where fees are paid on January 1, 2015 for a dental treatment plan under which the services would be rendered in 2015 and 2016?

10 January 2014 Internal T.I. 2013-0505911I7 - Meaning of "assembly project" in Brazil Convention -- summary under Article 5

Art. V, subpara. 2(g) of the Canada-Brazil Treaty included an "assembly project" in the definition of permanent establishment, rather than using the term "installation project." After noting that this provision likely was based on Art. 5 of the 1963 OECD Model, which used "assembly project," before this was changed in 1977 without comment to "installation project," referring to dictionary definitions of "assemble" and "install," and noting that the French Treaty versions generally used "montage" for both terms, CRA stated:

By services, 28 November, 2015

C.I.R. v. Lo and Lo, [1984] B.T.C. 281 (PC) -- summary under Timing

Each long-term employee of a law firm was entitled, upon retirement, to a lump-sum payment from the firm roughly equivalent to 1/24 of his annual salary as at the date of retirement multiplied by the number of his years of service.

By services, 28 November, 2015

The Queen v. Burnco Industries Ltd., 84 DTC 6348, [1984] CTC 337 (FCA) -- summary under Timing

The taxpayer was obligated under an agreement with a municipality to replace earth that it removed in the process of excavating a gravel pit. However, the taxpayer did not enter into a contract with a contractor to have the required "backfilling" work done until after the end of the taxation year. It was held that the taxpayer had not "incurred" an expense equal to the estimated cost of backfilling because "an expense cannot be said to be incurred by a taxpayer who is under no obligation to pay money to anyone."

By services, 28 November, 2015

Ensign Tankers (Leasing) Ltd. v. Stokes, [1989] B.T.C. 410 (Ch.D.) -- summary under Incurring of Expense

At 477:

"'To incur' means 'to render oneself liable to'."

By services, 28 November, 2015

Edmonton Liquid Gas Ltd. v. The Queen, 84 DTC 6526, [1984] CTC 536 (FCA) -- summary under Incurring of Expense

MacGuigan JA rejected the position of the Minister that amounts paid to a drilling operator in 1974 for drilling work to be performed in 1975 did not represent an "expense incurred in drilling...an oil or gas well" in respect of the taxpayer's 1974 taxation year. He stated (at pp. 6530, 6531) that the word "incurred"

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