reimbursement

8 July 2013 Internal T.I. 2012-0472651I7 F - Crédit pour l'embauche par les petites entreprises -- summary under Paragraph 118.2(3)(b)

A taxpayer who does not carry on a business and who hires and remunerates employees including a home care worker, and deducts source deductions and files T4 slips as required thereby generates the small business job credit ("SBJC"). The Directorate stated:

8 February 1994 Internal T.I. 9400657 - EMPLOYMENT EXPENSES -- summary under Subparagraph 6(1)(b)(xi)

"A reimbursement is usually considered as a repayment of an expense actually incurred and an allowance implies an amount paid in respect of some possible expense without any obligation to account for any actual expense." Given this distinction, the phrase, "reimbursed in whole or in part" in s. 6(1)(b)(xi) would not include flat rate allowances.

By services, 28 November, 2015

Westcoast Energy Inc. v. The Queen, 91 DTC 5334, [1991] 1 CTC 471 (FCTD), briefly aff'd 92 DTC 6253 (FCA) -- summary under Paragraph 12(1)(x)

Damages which the taxpayer received in settlement of its suit based on the direct and indirect costs incurred by it in replacing a defective pipe line were not subject to tax under s. 12(1)(x), given that such amounts were not a "reimbursement" for purposes of that section. "The ordinary and legal meaning of the word does not contemplate an award of damages" (p. 5341).

By services, 28 November, 2015

Canada Safeway Ltd. v. R., 98 DTC 6060, [1998] 1 CTC 120 (FCA) -- summary under Subparagraph 12(1)(x)(iv)

In finding that a refund of federal sales tax that predecessors of the taxpayer previously had paid in error did not qualify as a reimbursement for purposes of s. 12(1)(x)(iv), Létourneau J.A. noted that Westcoast Energy had found that “in all of the examples of the word reimbursement [provided to the court], there exists a flow of benefits between the respective parties.” He then stated (at p. 6063):

By services, 28 November, 2015

Newmont Canada Corporation v. The Queen, 2011 DTC 1117 [at at 628], 2011 TCC 148, aff'd 2012 DTC 5138 [at 7292], 2012 FCA 214 supra -- summary under Payment & Receipt

The taxpayer acquired a 100% undivided interest in a property (the "Quarter Claim") adjoining its "Golden Giant" mine subject to a 50% net profits royalty in favour of the vendor ("Teck/Corona"). In finding that the payment by the taxpayer of 50% of the net profits from the mining operations it conducted on the Quarter Claim did not entail a "reimbursement" by Teck/Corona for 50% of the mining taxes that the taxpayer paid as an expense of that operation, D'Arcy J. stated (at para. 77):

reimbursement

reimbursement

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