Imperial General Prop. Ltd. v. MNR (1982), 46 N.R. 510 (FCA)
MLB headnote and full text
Imperial General Properties Limited, (formerly Speedway Realty Corporation Limited) v. Minister of National Revenue
Indexed As: Imperial General Properties Ltd. (formerly Speedway Realty Corp.) v. Minister of National Revenue
Federal Court of Appeal
Heald, Le Dain, JJ. and Kelly, D.J.
December 24, 1982
Summary:
The Minister of National Revenue ruled that Speedway Realty was associated with Validor Ltd. under s. 39(4)(a) of the Income Tax Act, R.S.C. 1952, c. 148, on the ground that Validor controlled Speedway. The Tax Review Board dismissed the taxpayer’s appeal, but a further appeal was allowed by the Federal Court of Canada, Trial Division. The Minister appealed. The Federal Court of Appeal dismissed the appeal.
Income Tax – Topic 6806
Computation of tax – Rules for corporations – Associated corporations – Control – Meaning of – The Federal Court of Appeal held that “controlled” in s. 39(4)(a) of the Income Tax Act, R.S.C. 1952, c. 148, contemplated the right of control that rests in ownership of such a number of shares as carries with it the right to a majority of the votes in the election of the board of directors.
Words and Phrases
Controlled
– The Federal Court of Appeal held that “controlled” in s. 39(4)(a) of the Income Tax Act, R.S.C. 1952, c. 148, contemplated the right of control that rests in ownership of such a number of shares as carries with it the right to a majority of the votes in the election of the Board of Directors.
Cases Noticed:
Buckerfield’s et al. v. Minister of National Revenue, [1965] 1 Ex. C.R. 299, appld. [para. 7].
Minister of National Revenue v. Dworkin Furs (Pembroke) Limited et al., [1967] S.C.R. 223, appld. [para. 7].
Oakfield Developments v. Minister of National Revenue, [1971] S.C.R. 1032, dist. [para. 7].
Statutes Noticed:
Income Tax Act, R.S.C. 1952, c. 148 [para. 2].
Counsel:
H. Erlichman, for the appellant;
J. Swystun, for the respondent.
This case was heard on September 29, 1982, at Toronto, Ontario, before HEALD, LE DAIN, JJ., and KELLY, D.J., of the Federal Court of Appeal.
On December 24, 1982, LE DAIN, J., delivered the following judgment for the Federal Court of Appeal:
