on account of

27 June 2016 External T.I. 2016-0637341E5 F - Partnerships - Negative ACB -- summary under Subparagraph 53(2)(c)(v)

Rather than making current distributions of its cash flow to a limited partner, those sums are lent by the LP to the limited partner – then at the beginning of the following year the LP effects a distribution of the applicable share of the previous year’s profits to the limited partner by issuing a demand note to it and pays that note by way of set-off against the loans owing by the limited partner. Does this approach avoid negative ACB gains under s. 40(3.1)?

By services, 28 November, 2015

Transocean Offshore Ltd. v. Canada, 2005 DTC 5201, 2005 FCA 104 -- summary under Subsection 212(1)

Lump-sum damages received by the non-resident taxpayer from Canadian residents for the repudiation, prior to the slated operational commencement date, of a bare-boat charter of a drilling rig owned by its parent, were found to be payments received in lieu of the payment of rent, so that it was not entitled to a refund of Part XIII tax withheld. After noting (at para.

on account of