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21 March 2001 Internal T.I. 2000-0056297 - TENANT INDUCEMENT INVESTMENT ALLOWANCE -- summary under Subsection 181.2(4)

Where landlords agree to pay tenant inducements over a period of twenty years, the taxpayers would account for the amounts payable as "secured receivables" on the balance sheets in some instances, and in others as deferred income. Such amounts would not be loans or advances for purposes of s. 181.2(4)(b) because there is no lender and borrower relationship between the taxpayer and its landlord.

13 January 2012 Internal T.I. 2011-0414111I7 F - Deemed Interest Incomes - Exception 17(8) -- summary under Subparagraph 17(8)(a)(ii)

Where a taxable Canadian corporation makes a non-interest bearing loan to a controlled foreign affiliate (CFA 1) which, in turn, uses the proceeds to acquire the debt (the "Debt") of another CFA (CFA 2) from a non-arm's length Canadian corporation. CRA found that s. 17(8)(a)(ii) was not available as the Debt would not be considered to be a loan to the second CFA.

12 March 1992 External T.I. 5-910839 -- summary under Subsection 17(1)

With respect to an advance made by a Canadian licensor to a U.S. licensor that was repayable only out of royalties to be earned by the licensor, RC stated that "generally where the agreements in question do not contain an unconditional covenant to repay the principal amount of money advanced, the transaction cannot be considered to represent the loaning of money".

29 August 2011 Internal T.I. 2009-0336671I7 - Derivative -- summary under Investment Contract

Interest rate swap transactions between a controlled foreign affiliate of the taxpayer ("BCo") and a foreign financial institution specializing in derivative contracts ("FCo") under which there was a fixed coupon swap of FCo computed and paid every six months at a fixed notional interest rate on a US-dollar notional principal and a second arm payable by BCo on (presumably the same) US dollar notional principal at the prevailing US six-month LIBOR rate but payable every X years, did not represent loans as "the legal form of the transactions must be respected."

By services, 28 November, 2015

Loman Warehousing Ltd. v. Canada, 2000 DTC 6610 (FCA), aff'g 99 DTC 1113, Docket: 98-201-IT-G (TCC) infra -- summary under Subparagraph 20(1)(p)(ii)

Noël JA, before rejecting the taxpayer's submission that the post-1993 version of s. 20(1)(p)(ii) contemplated a taxpayer whose ordinary business included the lending of money, and not the business of the lending of money, noted a concession of taxpayer's counsel that the taxpayer's sole business was that of warehousing and that it was not in the business of lending money, and then stated (in f.n. 2):

By services, 28 November, 2015

Langhammer v. The Queen, 2001 DTC 45 (TCC) -- summary under Subsection 18(6)

Before going on to find that losses sustained by the taxpayer after investing in bonds of a condominium development were deductible under s. 20(1)(p)(ii) on the basis that the bonds were purchased in the course of carrying on a money lending business, Rip T.C.J. stated (at p. 52) that it had been recognized that "a debenture could be part of the portfolio held by a person carrying on the business of lending money; and that "debentures, bonds and term deposits are loans".

By services, 28 November, 2015

Autobus Thomas Inc. v. The Queen, 2000 DTC 6299 (FCA), briefly aff'd 2001 DTC 5665, 2001 SCC 64 -- summary under Subsection 181.2(3)

The taxpayer partly financed the acquisition of buses by means of its bank purchasing conditional sales contracts from a manufacturer. Marceau J.A. found that the contractual relationship between the bank and the taxpayer was determined by the initial contract between them when a line of credit was established. Accordingly, both ss.181.2(3)(c) and (d) applied: the money owed by the taxpayer to the bank under the line of credit was both a loan and also a debt secured by the transfer of rights set out in the conditional instalment sales contracts.

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