| Citation: |
Successor to Canadian Automatic Data Processing Services Ltd. v. Canada, 2009 FCA 117, [2009] 3 F.C.R. D-13 |
A-293-08 |
Income Tax
Corporations
Appeal from Tax Court of Canada decision (2008 TCC 236) funds received from clients should be included in appellant’s “taxable capital”, “taxable capital employed in Canada” as advance under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 181.2(3)(c) for 2001 taxation year—Appellant providing integrated payroll services, payroll tax services for processing fee—Appellant’s clients required to provide sums due in advance—Tax Court erring in finding funds received constituting “advance”—Wrongly relying on Oerlikon Aérospatiale Inc. v. Canada (1997), 97 D.T.C. 962; affd (1999), 99 D.T.C. 5318 (F.C.A.) since decision distinguishable—Act not defining “advance”—Funds provided herein constituting goods to be transferred—Not payment made before due, amount to be applied against price of service paid before service rendered, or amount paid for expenditure of appellant—Processing fees only amount due to appellant—Appellant’s use of funds as financial resource for investment purposes not changing legal nature thereof—Appeal allowed.
Successor to Canadian Automatic Data Processing Services Ltd. v. Canada (A-293-08, 2009 FCA 117, Létourneau J.A., judgment dated April 17, 2009, 17 pp.)