payable

The will of the deceased husband of the taxpayer, who had died in 1985, named her as the residuary legatee of all the estate property, including an investment portfolio that generated interest and dividend income. The administration of the estate was completed in 1987. Revenue Quebec assessed the taxpayer for her 1986 taxation year pursuant to the Quebec equivalents of ss. 104(6) and 104(24) on the basis that all the interest and dividend income of the estate in that year was payable to her, even though only a smaller portion thereof was in fact distributed to her.

The respondent was liable under s. 224(4) for its failure to respond to s. 224(1) demands (made both before and after the maturity of the GIC in which the trust was invested) in respect of proceeds of an RRSP where the annuitant had instructed the respondent on maturity of the GIC held in the plan to pay the proceeds directly to him immediately after the expiry of the time covered by the last of such demands. In finding that s. 224(1) was not restricted to debtor/creditor relationships, Isaac C.J., for the majority, stated (at para.

The taxpayers owed approximately $2.7 million on mortgage loans including substantial amounts of interest that previously had been agreed to be deferred and added to the amount of the mortgage. The mortgage loan was restructured so that the taxpayers became obligated to make annual minimum interest payments of $20,000 for each of the first 15 years following the restructuring and had the right at any time within the 15-year period to discharge all amounts on the loan by the payment of the sum of $100,000 plus all of the unpaid interest payments of $20,000 per annum.

Part of the consideration given by the taxpayer for the purchase by it of a partnership interest was the assumption by it of a portion of the obligations of the vendor under a debenture of the partnership containing a specific covenant to pay interest on the principal amount thereof and on accumulated unpaid interest but containing a stipulation that payments of accumulated interest, current interest and principal were payable only out of 50% of the net cash flow of the partnership.

A general building contractor in accordance with the terms of its contracts with its subcontractors withheld 10% of the amounts invoiced on a monthly basis to it by its subcontractors. The amounts withheld became due 35 days after a completion certificate was issued by the architect. Since it was far from certain that the withheld amounts would be paid in full (or even in part) to the subcontractors, they were not deductible in the year of withholding.

Where the consideration for sale of goodwill is to be paid to the vendor over a series of years, then 1/2 of the amounts so paid are included as eligible capital amounts in computing the vendor's income in the years of payment as opposed to the earlier year of sale: in the year of sale, the amounts to be paid in subsequent years were not then "payable".

The right to claim the tax credit arises in the year that the income in the foreign country is earned. To hold that the amount of the credit is not established until the date that the foreign business-income tax is required to be paid could result in the taxpayer being required to file its tax return before the amount of the credit could be accurately ascertained.