INCOME TAX
Income Calculation
Deductions
Appeal from Tax Court of Canada ruling allowing respondent’s appeal against assessment by Minister of National Revenue for 1996 tax year—Interpretation of Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 127(5), of definition of “investment tax credit” (ITC) in Act, s. 127(9)(c)—Whether definition limited to ITC amounts claimed by respondent for years preceding 1996, which Minister took into account in assessment issued for those preceding years—Definition of ITC in s. 127(9)(a) referring to specified percentage “of certified property or qualified property” in year property acquired—“Eligible ITCs” must not be confused with “claimed ITCs”—Only ITCs reducing income tax payable in 1996 affected by Minister’s assessment, not those applicable to preceding years—Appeal allowed.
Canada v. Papiers Cascades Cabano Inc. (A-410-05, 2006 FCA 419, Létourneau J.A., judgment dated 22/12/06, 12 pp.)