loan

By services, 18 February, 2025

Matte v. The King, 2025 TCC 16 -- summary under Investment Contract

In finding that non-interest-bearing amounts advanced to the taxpayer by his predecessor employers, as evidenced by promissory notes (the “Macquarie Notes”) were loans rather than salary advances, Ouimet J first stated (at paras. 54-45):

[T]he common law definition of a loan applicable in Ontario requires:

a) A sum of money is advanced to a person by another person; and

b) The person that received the sum of money agrees to repay it.

The Macquarie Notes meet that definition.

By services, 19 September, 2021

CAE Inc. v. The Queen, 2021 TCC 57, aff'd 2022 CAF 178 -- summary under Investment Contract

CAE, which was engaged in manufacturing flight simulator systems, incurred over $700 million in R&D expenditures on further developing such systems, as to which it received “contributions” over a five-year period of $250 million from Industry Canada. Under the agreement with Industry Canada, CAE was required to repay 135% of the amounts advanced (or $337.5 million) beginning after the last advance was made and in escalating specified amounts over a 15-year period.

5 July 2012 Internal T.I. 2010-0388551I7 F - Fiducie - retour de sommes -- summary under Subsection 104(13)

A family trust whose beneficiaries included Father, Mother, two sons (Son A and Son B) and the wife of Son A (Daughter-in-law A) but not the wife of Son B (Daughter-in-law B) realized a capital gain on the disposition of a qualified small business corporation shares of Holdco, and distributed a portion of those gains to the above four children who, however, immediately returned most of the distributed funds to Father and Mother and were issued “Acknowledgements of Debt” which, however, they never received and, in fact, Father requested that the auditor not mention to them that they were owe

By services, 9 January, 2017

Meilleur v. The Queen, 2016 TCC 287 -- summary under Subparagraph 20(1)(p)(ii)

Beginning in 2006, the two married taxpayers (Susan and Barry) used their retirement funds and borrowed money to make advances to two real estate developers (on a pooled basis along with other investors through an intermediary corporation referred to as “ACI”) at interest rates 10% to 19% higher than prevailing borrowing rates. Following the 2008 financial crisis, each of the advances was in default and an almost total loss was sustained.

13 June 2012 Internal T.I. 2012-0448961I7 F - Paiements en trop faits par un employeur -- summary under Subsection 80.4(1)

An employee was on extended sick leave but nonetheless received remuneration from the payroll service, which was not informed of the leave. On the employee's return to employment a number of years later, the error was discovered, and it was agreed that the overpayments would be repaid over a period that straddled two calendar years through deduction from the employee's post-return remuneration. CRA stated (TaxInterpretations translation):

loan