INCOME TAX
Corporations
Appeal from Tax Court of Canada decision allowing appeal against reassessments of capital tax for 2001, 2002, 2003—In 2001 respondent financial institution issuing Class C shares for consideration of $1,170,000,000—Because of retractability feature, shares classified as liability for financial reporting purposes in balance sheets—Tax returns filed on basis capital stock not including any amount in respect of those shares—Reassessments based on view $1,170,000,000 should have been included in capital stock—Tax Court holding accounting treatment in balance sheets basis for imposition of tax—Interpretation of Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 181(3)—History of provision reviewed—S. 181(3)(b)(ii) illustrating Parliament intended to rely upon external standards in relation to large corporations tax liability—Appeal dismissed.
Canada (Attorney General) v. Ford Credit Canada Ltd. (A-410-06, 2007 FCA 225, Ryer J.A., judgment dated 11/6/07, 16 pp.)