Source

Question 1

What section? What does it outline?

Answer 1

Section 3 - 3(a) = office, employment, business and property are recognized sources.
3(b) = capital gains

Question 2

Surrogatum principle & case law + test

Answer 2

If it looks and seems like income from a source, it is income from a source.

Tsaipriailis v The Queen - affirmed principle. Set out test… what was the payment intended to replace? Would the replaced amount have been taxable in recipients hand?

Question 3

Bellingham

Answer 3

Compensation - generally acquisition of land = capital gain
Ordinary interest - interest is income from property = property
Additional = punitive = non-taxable (pain & suffering)

Question 4

Schwartz

Answer 4

S 6(3) includes payments for before, during and after employment.

Question 5

Nexus - b/w TP and Source

Answer 5

Taxable on control of income;
Taxable on benefit of income;
Field - RRSP stolen
Buckman - embezzled funds.

Question 6

Income Splitting… how/common techniques

Answer 6

Indirect payments (56(2))
Transferring rights to income (56(4))
Transfer of loan to minor (74.1)(2)
Transfer or loan to spouse (74.2)(74.1(1)) - Attribution rule, subject to benefits but income/loss still attributed to lender.

Question 7

Losses - Section, carryover rule, meaning

Answer 7

3(d) - losses from employment, office, business and property are deductible
Loss carryover (s 111(1)) - provides flexibility to move around loss to better reflect aggregate.