3 Index Current to Release 15-3 Advance income tax rulings. costs, 9-5. retiring allowances, 45-51 to 45-55. structured settlements, 2-71, 2-104 to 2-106, 45-1 to 45-9 Alberta Business Corporations Act. individual shareholders.. corporate repurchase of shares, 4-2 Alimony and maintenance: see also Separation and divorce. conditions for includibility, 7-2. income inclusions and deductions, 7-2 to 7-22. legal costs incurred in enforcing, deductibility of, 9-12.1 to 9-14.7. third party payments, 7-3 Alternative minimum tax, 2-94 Arrears. alimony and maintenance payments in, 7-2 to 7-22 Assets. distribution of, to partners, 5-6 to 5-7. transfer of, to new partnership, 5-6 Bankruptcy and insolvency. basic rules, 6-1. corporations, 6-2 to 6-5.. planning opportunities, 6-12.4 to 6-17. individuals, 6-9 to 6-12.4 Beneficiary of trust. disposition of a capital interest in trust by, 8-5 to 8-6. dividend tax credits, 8-6. meaning, 8-2. more than one, 8-7.. allocation of earned income, 8-6. preferred, election, 8-4 to 8-6.. defined, 8-3. private corporation as, 8-7. public corporation as, 8-6 to 8-7. trust and estate litigation.. planning opportunities, 8-6 to 8-9 Business/property income. damages representing, 2-5, 2-6, 2-36.8.4.. Ponzi scheme, 2-62.3 to 2-62.4.. distinct business operations, 2-37 to 2-40.. material impact on incomeproducing apparatus, 2-36.14 to 2-37, 2-39.. Revenue Canada s position, 2-54.13.. substance over form, 2-40 to 2-42.. tort actions, 2-42 to 2-44 Business principle test. damages paid on capital or income account, 2-17 to 2-19 Butterfly transactions, 5-5 Canada Revenue Agency. approach to inconsistent treatment of damages paid and received, 2-62.4 to 2-65. damages as tax-free capital receipts, 2-59 to 2-62.4. directors liability, 10-36.2. policy re criminal defence fees, 9-14 to 9-18. policy re deduction from income in respect of a damage payment, 2-29 to 2-33. policy re deduction.. from income in respect of settlements and similar payments, 2-29 to 2-30.. representing income from a business or property, 2-52.3 to 2-55. policy re legal fees incurred in enforcing alimony/maintenance agreements, 9-11 to 9-13. policy re personal injury damages, 2-65 to 2-66. structured settlements, acceptance of, 2-70 to 2-71 TAL 15-3 (2015 - Rel. 3)
4 Tax Aspects of Litigation Canada Employment and Immigration Commission. legal expenses regarding decisions of, 9-6 Canadian-controlled private corporation. loss of status, 4-6 Capital. damages paid on account of, 2-5. distinguished from income, 2-4. income vs: see Income vs capital Capital cost allowance. generally, 2-5. recapture of, 2-56 Capital gain/loss. disposition of property, from.. damages received characterized as, 2-5, 2-6, 2-55 to 2-56.1. disposition of property to partners, 5-3. tax deferral through rollover, 2-94 Capital gains exemption. lifetime, 2-56.1, 8-9. qualified farm property, 8-9 Capital interest in a trust, 8-4. disposition of, by beneficiary, 8-5 Capital losses. preservation of, through capitalization, 4-5 to 4-6 Capital receipts, tax-free. damages as, 2-5, 2-6, 2-48 Child. tax-free transfers to.. farm property, 8-7 to 8-8.. shares of small business corporation, 8-8 Child support: see also Separation and divorce. agreements or orders made before May 1997, 7-6.25 to 7-10.14. CRA policy on payments of.. Folio S-F3-F3, 2-193 to 2-214.4. calculating annual income, 7-10.14 to 7-16. Canada Child Tax Benefit, eligibility, 7-10.15 to 7-10.22. deductibility of, 7-9 to 7-10.14. Federal Child Support Guidelines, 7-6.20 to 7-6.24. marital disputes, 9-12.1 to 9-12.2. support amount defined, 7-6.17. support amounts to be included in income, 7-6.19 to 7-6.20 Commercial litigation: see also Damages paid/payable and Damages received/receivable. expenses, deductibility of, 9-6.8.5 to 9-8. generally, 2-4 to 2-7. tax consequences, how determined, 2-3 to 2-4 Commercial reality. damages paid or payable on account of, 2-27 to 2-28 Commercial trading. ordinary principles of, 2-22.4.. damages paid or payable, 2-22.1 to 2-22.4, 2-24 Common sense test. damages paid on capital or income account of, 2-19 to 2-21 Contractual breach. vs tortious action.. differences in characterization of damages received, 2-43 Corporate repurchase of shares. corporate shareholders, 4-4. dividend received by, rules, 4-4. individual shareholders, 4-1 to 4-4. Part IV tax, 4-4. purchasing corporation, 4-5 to 4-6.. stop loss rules, 4-5 to 4-6. reversed transactions, 4-7 to 4-8.7 Corporations: see also Corporate repurchase of shares. bankruptcy, 6-2.. planning opportunities, 6-4. beneficiary, corporate, 8-7.. tax-free dividends, 8-7. change of control, 4-5. non-competition agreement payments, 4-8.7 to 4-15. private, as beneficiary of trust, 8-7. public, as beneficiary of trust, 8-6 to 8-7. shareholder disputes.. legal expenses, deductibility of, 9-7. transfer of property to, by partnership, 5-4.6, 5-6 (2015 - Rel. 3) TAL 15-3
Index 5 Costs. GST on awards of, 10-22.14 to 10-22.17 Courts. distinction between income and capital, 2-4 to 2-5 Creditors. acquiring or reacquiring real property as a result of mortgage foreclosures and repossessions, tax position, 3-3 to 3-4. definition, 6-8 Crime. income/losses, Folio S3-F9-C1, 25-257 to 25-270 Criminal defence fees. deductibility of fees, 9-14.19 to 9-20.11 Cumulative eligible capital account. reduction in, 2-58 Damages: see also Damages paid/ payable; Damages received/receivable. characterization of awards, for tax purposes, 2-5. defined, 2-3. eligible capital receipts, 2-56.1 to 2-59. income vs capital: see Income vs capital. independent contractor relationship, 2-92.21 to 2-92.22. interest, including, 2-62.4. personal injury: see Personal injury damages. reciprocity of payments and receipts, 2-32. taxation of.. general perspectives on, 2-3 to 2-4.. payment vs receipt, 2-3. tax-free capital receipts, as, 2-59 to 2-62.4 Damages paid/payable. account of capital on, 2-5 to 2-92.3. and damages received, reciprocity of, 2-32. Canada Revenue Agency s policy re deduction from income in respect of, 2-30 to 2-36.2. control test, 2-92.5. damages received versus.. practical considerations reinconsistent treatment, 2-62.4 to 2-65. deductibility unaffected by overall annual loss, 2-23. eligible capital expenditures, representing, 2-36.2 to 2-36.3. employee/employer relationship, 2-91 to 2-92.18. fines or penalties.. deductibility of, 2-32.6. income vs capital account, 2-6.. ambiguous situations (the modern approach to), 2-21 to 2-22.4.. application to the business principle test, 2-17 to 2-19.. application to the common sense test, 2-19 to 2-21.. enduring benefit test, 2-10.2 to 2-14.. modern approach, 2-21 to 22.2, 2-29 to 2-30.. multiple test approach, 2-14 to 2-17.. ordinary principles of commercial trading, 2-22.4 to 2-24.. payments made on account of commercial reality, 2-28 to 2-29.. payments representing goodwill, 2-24 to 2-27.. principles and tests evolved to determine, 2-60.. termination of distributorship, 2-27 to 2-28. must be reasonable to be deductible, 2-30. organization/integration text, 2-92.11. purposes of gaining or producing income, 2-5, 2-7 to 2-10.2. receipts vs distinction between the categorization of, 2-6. representing eligible capital expenditures, 2-5, 2-36.2 to 2-36.3. sole proprietorship, 2-91, 2-92.2 to 2-92.3, 2-92.18 Damages received/receivable. breached contract, characterization of, 2-44 to 2-47, 2-52.4 to 2-54.12. Canada Revenue Agency s position, 2-54.13 to 2-55. capital gains exemption, lifetime, 2-56.1 TAL 15-3 (2015 - Rel. 3)
6 Tax Aspects of Litigation. capital gains from disposition of property, damages representing, 2-55 to 2-56.1. collective agreement, breach of, 2-54.12 to 2-54.13. damages paid, vs.. practical considerations re inconsistent treatment, 2-62.4 to 2-65. disposition of property, 2-5. distinction between the categorization of, 2-6. eligible capital receipts, damages representing, 2-56.1 to 2-59. forfeited deposits, 2-47 to 2-48. insurance contract, compensation for breach of, 2-52.4 to 2-54.12.. surrogatum principle, 2-36.3 to 2-36.10, 2-36.12, 2-52.2, 2-54.2 to 2-54.3. interest, damages include, 2-62.4. practical considerations, 2-62.4 to 2-65. pure capital receipt, 2-5. representing capital gains from the disposition of property, 2-55 to 2-56. representing eligible capital amounts. 2-5, 2-6, 2-47. representing income from a business or property: see under Business/ property income. tax-free capital receipts, 2-59 to 2-62.4. termination of contract, compensation for, 2-48 to 2-52 Debt. bankruptcy situations, 6-4. fairness provisions, 3-6.7 to 3-6.8. forgiveness of, 3-6.01 to 3-6.10 Debtor. position re mortgage foreclosures, 3-4, 3-5 to 3-6.02 Deferred profit-sharing plan. rollovers, 2-93 Dependents relief cases. fatal injury, 2-84 to 2-85 Deposits, forfeited. damages received/receivable, 2-47 to 2-48 Depreciable property. damages received for injuries to, 2-55 to 2-56 Directors liability see also Goods and Services Tax (GST). case digests, 11-8.5 to 11-41.. directors held liable, 10-36.11 to 10-42.16, 11-8.5 to 11-26.6.. directors held not liable, 10-42.16 to 10-56.2, 11-26.6 to 11-44. defence of due diligence, 10-36.4 to 10-36.5, 11-1 to 11-2, 11-4 to 11-5. employee source deductions, 11-1. GST, unpaid, 10-34, 11-3. generally, 10-34.22.2 to 10-34.41. indemnities, 11-2 to 11-4. introduction and comments, 11-1 to 11-8.08.13. joint and several liability, 10-56.2 to 10-60. protective measures, 11-5 to 11-6. quasi-criminal consequences, 11-8.4.11. reassessment beyond normal time limits, 11-8.08.13 to 11-8.08.14. relief under fairness provisions, 10-36 to 10-36.1, 11-8.4 to 11-8.4.1. resignation letter, 11-8.07, 11-8.08.1 to 11-8.08.2. rules of thumb, 10-34.42 to 10-36.2, 11-8.1 to 11-8.3.. events that will absolve director liability, 10-35, 11-7 to 11-8.. events that will not absolve director liability, 10-35, 11-5 to 11-7. withholding tax, 11-1, 11-2 Discretionary trust. use of, 8-5 Distinct business operations. damages representing income from business or property, 2-37 Distributorship. termination of, 2-25 to 2-27 Dividend. deemed paid, 4-2. received by corporate shareholders, rules, 4-4. tax-free dividends, 8-6 to 8-7 Divorce: see Separation and divorce Election. re preferred beneficiary, 8-4 to 8-5 Eligible capital amounts (2015 - Rel. 3) TAL 15-3
Index 7. damages received representing, 2-5, 2-6, 2-56 to 2-59 Eligible capital expenditure. damages paid representing, 2-5, 2-36.2 to 2-36.3 Employer. Folio S2-F3-C1, 25-271 to 25-276. salary disputes, legal expenses incurred in, 9-2 to 9-4 Enduring benefit test. damages paid on capital or income account, 2-10. development of, 2-11 to 2-14. generally, 2-10 to 2-11. interpretation of enduring, 2-12 to 2-13 Estates: see also Trusts. disputes concerning, 8-1. preferred beneficiary election, 8-4 to 8-5. taxation issues, 8-1 to 8-6 Expenditures. deductibility, business vs. personal expenses, 2-10.1 to 2-10.2. income vs capital account, 2-14 to 2-16.. common sense approach, 2-19 to 2-21.. criteria, 2-15.. modern approach, 2-21 to 2-22.4 Expenses. representation, 9-3 to 9-4 Family support payments. Form T1158, 27-3 Farm property. tax-free transfer to child, 8-7 to 8-9 Fatal injury cases. dependents relief cases, 2-84 to 2-85. taxation factors and quantum of award, 2-79 to 2-80 Foreclosures: see Mortgage foreclosures and repossessions Goods and Services Tax (GST)/Harmonized Sales Tax (HST). basics of GST/HST, 10-4 to 10-8.2.. exempt supplies, 10-10.1 to 10-10.5.. how GST works, 10-4 to 10-8.2.. rebates, 10-10.6.. small suppliers, 10-10.6.. zero-related supplies, 10-8.2. bibliography, 10-59. breach of contract, GST on, 10-31 to 10-34.3.. conditions, 10-32 to 10-33.. scope of subsec. 182(1), 10-34.1.. transitional rule, 10-34. costs by court, award of, 10-34.4 to 10-34.6. directors liability, 10-36.11 to 10-42.16.. relief under fairness provisions, 10-36.3 to 10-36.7. directors not liable, 10-42.9 to 10-56. joint and several liability, 10-56.2 to 10-60. introduction, 10-2 to 10-3. legal aid, 10-34.21 to 10-34.22. litigation expenses, 9-23. mortgage foreclosures, seizures and repossessions, 10-34.6 to 10-34.20.. court seizures, 10-34.15.. lease of seized personal property, 10-34.18 to 10-34.19.. power of sale, 10-34.19.. quitclaim or other voluntary transfer, 10-34.19.. receivership, 10-34.20. redemption of property, 10-34.19.. sale of seized personal property, 10-34.17 to 10-34.18. sale or lease of seized property, 10-34.14 to 10-34.15.. seizure or repossession, no GST on, 10-34.13.. special rules, 10-22.17 to 10-26.. use of personal property seized after 1993, 10-34.16 to 10-34.17.. use of real property, 10-34.15 to 10-34.16. rules of thumb, 10-34.42 to 10-36.2. settlement of claim, transfer of property to insurer on, 10-34.20. timing of liability: appeals, 10-34.20. tort vs contract, suing in, 10-34.3. unpaid GST, suing for, 10-10.8 to 10-16.. interest and penalties, 10-15 to 10-16.. preconditions for claim under s. 224, 10-10.9 TAL 15-3 (2015 - Rel. 3)
8 Tax Aspects of Litigation.. where conditions not met, 10-10.9 to 10-14. when contract silent, who bears GST, 10-16 to 10-30 Goodwill. damages representing payments for, 2-24 to 2-27 Gratuitous payments. deductibility of, 2-28 Illegal acts. damages paid as result of, not deductible, 2-31 Income. distinguished from capital, 2-4. gaining or producing, damages paid for purposes of, 2-5 Income attribution. rules not applicable in separation/ divorce situations, 7-18 Income interest. of a trust, 8-3 to 8-4 Income-producing apparatus. material impact of damages, 2-35 Income tax objections and appeals. deductions in respect of fees and expenses, 9-6.8.4 to 9-6.8.14 Income vs capital. damages paid or payable: see under Damages paid/payable. expenditures characterized as.. common sense approach, 2-19 to 2-21.. criteria, 2-19 to 2-20.. modern approach, 2-21 to 2-22.4.. reciprocity of damages paid and received, 2-32 Individuals. bankruptcy, 6-9 to 6-12.4. shareholders, 4-1 to 4-4 Infant. personal injury award paid to, 2-78 to 2-79 Inter vivos trust, 8-2. settlor of, defined, 8-3 Involuntary disposition of property, 3-6.1 to 3-12 Legal fees. commercial litigation expenses, 9-6.8.13 to 9-8.4. contingency fees, 9-20.11 to 9-25. criminal defence fees, 9-14.19 to 9-20.11. deductibility of, 9-1. regulatory litigation, 9-6.6 to 9-6.8.4. salary disputes, 9-2 to 9-6.4. shareholder disputes, 9-8.5 to 9-12.1 Litigation. need for awareness of tax implications, 1-2. statutory provisions re taxation issues, 1-2. tax aspects, increased concern regarding, 1-1 Litigation expenses. characterizing, 9-1. deductibility, 9-1 to 9-2. commercial litigation, 9-6.8.13 to 9-8.5. contingency fees, 9-20 to 9-25. criminal defence fees, 9-14.19 to 9-20.11. marital disputes, 9-12 to 9-13. regulatory litigation, 9-4.2 to 9-5. salary disputes, 9-2 to 9-4.2. prerogative of priority, 3-6 to 3-6.01 Loss. deductibility of damage payments unaffected by, 2-23 Lottery winnings. Folio S3-F9-C1, 25-257 to 25-270 Marital disputes. child support, 9-12.1 to 9-12.2. legal expenses re, deductibility of, 9-12.1 to 9-14.18. planning opportunities, 7-22 to 7-27. taxation aspects of, 1-2 Minors. personal injury damages, 2-78 to 2-79 Mortgage foreclosures and repossessions. Certificate of Lis Pendens, 3-6.01 to 3-6.03. debtor s position, 3-4. forgiveness of debt, 3-6.03 to 3-6.10. GST, applicability of, 10-22.17 to 10-33. involuntary dispositions and replacement property rules, 3-6.10 to 3-12 (2015 - Rel. 3) TAL 15-3
Index 9. sanctions, 9-6.8.1 to 9-6.8.2. statutory provisions, 3-1 to 3-2. tax position of creditor who has acquired or reacquired real property as result of, 3-3 to 3-4.. illustration, 3-4 to 3-5 Non-competition agreement. payments, 4-8.4 to 4-14.1.. taxation of (subsec. 6(3.1)), 2-108 to 2-113. rules governing (s. 56.4), 4-14.1 to 4-21 Non-fatal injury cases. taxation factors and quantum of award, 2-60 Owner-occupied home. separation and maintenance payments, 7-6 Partner(s). continuing partnership as sole proprietorship, 5-7 to 5-8. disposition of property to, 5-3, 5-6 to 5-7. distribution of assets to, 5-7. spouses, 5-4.1 to 5-4.3, 10-8.1. transfer of asset to new partnership, 5-6 to 5-7. transfer of property to corporation, 5-5 to 5-6. transfers of partnership property, taxfree, 5-3 to 5-5 Partnership(s). between spouses, 5-4.1 to 5-4.3, 10-8.1. debtor, as, 3-6.8. defined, 15-1. disputes between members, 5-1. Folio S4-F16-C1, 25-277 to 25-283. generally, 5-1 to 5-4.3. new partnership, transfer of assets to, 5-6 to 5-7. types of remedies, 5-1. taxation of, 5-1. tax-free transfer of property to a corporation, 5-5 to 5-6. tax-free transfer of property to partner, 5-4 to 5-4.5. transfer of assets to new, 5-6 to 5-7 Partnership test, 5-4.3 Personal injury damages. fatal injury, quantum of, 2-63. fatal injury/dependents relief cases, 2-84 to 2-85. generally, 2-65. infants, 2-78 to 2-79. injured person, claims by, 2-80 to 2-84.. earnings lost, taxation of, 2-85 to 2-86.. invested award, taxation of, 2-86 to 2-88. interest portion, taxability of, 2-65. non-fatal injury, quantum of, 2-60. taxation after receipt of an award, 2-70.3.. structured settlements, 2-70.3 to 2-78: see also Structured settlements. taxation factors and quantum of, 2-79 to 2-80. taxation of, 2-65 to 2-69 Personal injury litigation. determining taxation consequences, 2-65 to 2-69 Personal trust, 8-2 Ponzi scheme. partnerships, 5-4.3. source of income, 2-36.6, 2-36.7 to 2-36.8.3, 2-62.3 to 2-62.4 Principal residence. defined, 7-22 to 7-22.1. Folio S1-F3-C2, 25-215 to 25-255 Property. disposition of.. damages received characterized from, 2-5, 2-6.. damages representing capital.. gains from disposition of, 2-55.. involuntary, 3-6.1 to 3-7.. legal costs deducted from proceeds, 9-14.6.. restrictive covenants, rules governing (s. 56.4), 4-15 to 4-16.4.. to partners, 5-3. partnership, 5-3 to 5-7.. tax-free transfer to partner, 5-4.6 to 5-5.. tax-free transfer of, to corporation, 5-5 to 5-6.. replacement, rules, 3-6.10 to 3-12 Real estate litigation. issues in, 3-1 TAL 15-3 (2015 - Rel. 3)
10 Tax Aspects of Litigation Registered pension plan. transfer of retiring allowance to, 2-96.4 to 2-97, 2-100.1 to 2-100.2 Registered retirement savings plan. transfer of assets of, in marital disputes, 7-18 to 7-19, 7-22.3 to 7-22.4. transfer of retiring allowance to, 2-96.2 to 2-97, 2-100.1 to 2-100.2 Replacement property rules, 3-6.1 to 3-12 Repossession: see Mortgage foreclosures and repossessions Representation expenses, 9-4 to 9-5 Restrictive covenant: see Non-competition agreement Retiring allowances. defined, 2-94. retirement compensation arrangement (RCA), 2-100.11 to 2-107.. custodian/trustee of RCA trust, 2-100.12 to 2-101.. employer, taxation of, 2-100.11 to 2-100.12.. former employee, taxation of, 2-101... minutes of settlement, 2-101 to 2-104. retiring allowance regime, current.. CRA policy on payments received, 2-94 to 2-96.4.. characterization of payments as retiring allowances, 2-100 to 2-100.5... amount of termination payment, 2-100.11... contractual payments, 2-100.8 to 2-100.11... general considerations, 2-100 to 2-100.5... timing and circumstances of payment, 2-100.5 to 2-100.7.. general rules, 2-92.13 to 2-95.. legal expenses, 2-98.2 to 2-100.. lump sum payments, retroactive, 2-97 to 2-98.. tax deferral through rollover, 2-95 to 2-97.. withhold tax, requirement for employer to, 2-98.1 to 2-98.2. transfer to registered retirement savings plan, 2-95 to 2-97. withholding of tax, 2-98.1 to 2-98.2 Revenue Canada/CCRA: see Canada Revenue Agency Rollovers. family farm property, to child, 8-7 to 8-8. partnership property.. to corporation, 5-5 to 5-6.. to new partnership, 5-6 to 5-7.. to partners, 5-3, 5-6 to 5-7.. to sole proprietorship continuing partnership business, 5-7 to 5-8. shares of small business corporation, 8-7 to 8-8. tax deferrals through, 2-93 to 2-94. trust property, 8-7 to 8-8 Salary disputes. legal expenses incurred in, 9-2 to 9-4.2 Separate business. spousal partnership, 5-4.1 to 5-4.3, 10-8.1. what constitutes, 2-38 to 2-39 Separation and divorce: see also Marital disputes. attribution rules for capital gains not applying, 7-18. child support, 7-4.1 to 7-15: see also Child support. generally, 7-1. legal expenses relating to marital disputes, 9-12.1 to 9-14.7. non-spousal support, 7-15 to 7-18.1. perspectives, 7-1. planning opportunities, 7-22 to 7-27. spousal support, 7-2 to 7-16.. Folio S1-F3-C3, 25-193 to 25-214.4. transfer of assets of registered retirement savings plan in settlement of, 7-18 to 7-19. transfer of property in settlement of, 7-18 to 7-21 Settlements and similar receipts. representing income from business or property, 2-36.8.4 to 2-36.14. Revenue Canada s policy re deduction from income in respect of, 2-29 Settlor. of inter vivos trust, defined, 8-2. of testamentary trust, defined, 8-3 Share(s) (2015 - Rel. 3) TAL 15-3
Index 11. redemption, acquisition or cancellation of deemed dividend paid, 4-2. small business corporation, rollover of to child, 8-8 Shareholders. corporate, 4-4 to 4-5.. dividends received by, rules, 4-4. disputes between, 4-1 to 4-8.7.. legal expenses, 9-8 to 9-12. individual, 4-1 to 4-4.. corporate repurchase of shares, 4-5 to 4-6. loans, 4-8.6 to 4-8.7 Small business corporation. rollover of shares to child, 8-8 Sole proprietorship. partnership continued as, by single partner, 5-7 Spousal support. CRA policy on payments of.. Folio S1-F3-C3, 25-193 to 25-214.4.. Form T1157 election, 27-1.. Guide P102, 26-1. income inclusions and deductions, 7-2 to 7-22 Spousal trust, 8-2 Stop loss rules, 4-5 to 4-6 Structured settlements, 2-70.3 to 2-78. advance income tax ruling, 2-71, 2-104 to 2-106, 45-1 to 45-2. conditions that must be complied with, 2-70.4 to 2-71. final release, 2-106 to 2-107. generally, 2-70.3 to 2-70.4. illustrated, 2-70.4. increased use of, 2-70.4. non-tax considerations, 2-76 to 2-78. obtaining binding tax ruling, 2-71. Revenue Canada s policy, 2-70.4 to 2-72. tax policy and future, 2-78. tax treatment to casualty insurer, 2-73 to 2-76. tax treatment to claimant, 2-72 to 2-73 Substance over form. damages representing income from a business or property, 2-40 to 2-42 Surrogatum principle. commercial litigation expenses, 9-6.8.13 to 9-8.5. damages received or receivable, 2-35 to 2-36. insurance contract, compensation for breach of, 2-54.2 to 2-54.3 Tax equity. treatment of damages paid and received, 2-32 Tax-free capital receipts. damages as, 2-48 Tax returns. bankruptcy, year of, 6-3 Termination payments. deferred compensation, distinguished from, 2-100.5. distributorship, 2-25 to 2-27. lump-sum payments, 2-94.1. rules, 2-67. timing, 2-100.2 to 2-100.3 Testamentary trust. defined, 8-2. generally, 8-3 to 8-4. settlor of, defined, 8-2 Tort actions. damages in, 2-42 to 2-44. GST not applying, 10-22.14 Trademarks. damages paid to effect registration of, income expenses, 2-25 Trust(s). capital interest in, 8-4. income interest in, 8-3 to 8-4. preferred beneficiary election, 8-4 to 8-5. taxable income of, 8-4 to 8-5. taxation issues relevant to disputes over, 8-1. taxation of, basic rules, 8-1. types of, 8-2 Trust and estate litigation. planning opportunities, 8-6 to 8-9 Unemployment insurance. legal expenses regarding disputes concerning, 9-6 Withholding of tax. retirement compensation arrangements.. special tax, 2-100.5 TAL 15-3 (2015 - Rel. 3)
12 Tax Aspects of Litigation. termination payments, 2-94.1 to 2-95 Wrongful dismissal. damages for, 2-88 to 2-113.. deductibility to employer, 2-88 to 2-92.28.. taxation of employee: former regime, 2-92.29 to 2-94. legal expenses connected with, not deductible, 9-2 to 9-6.4.1. retirement compensation arrangements, 2-100.11 to 2-107. retiring allowance regime, current, 2-94 to 2-100.1: see also Retiring allowances.. characterization of payments as retiring allowances, 2-100.1 to 2-100.12.. general rules, 2-94 to 2-96.4.. legal expenses, 2-938.2 to 2-100.. tax deferral through rollover, 2-96.4 to 2-97. spouses practising in same firm.. separationagreements,7-10.1,7-14 (2015 - Rel. 3) TAL 15-3