Borstad Welding Supplies ( 1972 ) Ltd. v. Canada
T-3066-90
Reed J.
9/9/93
12 pp.
Whether disposition of refillable gas cylinders used in welding occurred on June 1, 1985 under Income Tax Act, s. 13(21)(c) -- Agreement providing Union Carbide (Union) would purchase all working assets of plaintiff (Borstad) -- Under agreement, cylinders to be purchased over period of five years, one-fifth being purchased each year -- Cylinders would be leased by Union until purchased -- Transactions occurring as contemplated by agreements -- Determination of when title passed herein governed by Sale of Goods Act -- No dispute property did not pass on June 1, 1985 -- Whether purchaser acquired all incidentals of title although legal title might remain in vendor -- Because of nature of business, cylinders in question almost always in possession of, used by, and at risk of someone other than owner -- Cylinders rented by Union to plaintiff at plaintiff's risk -- Union required to retain cylinders in sole possession and control -- Not acquiring all incidents of title to cylinders except legal title -- On June 1, 1985, Union acquiring rights in contract relating to property, not acquiring property itself -- Parties not intending sale to occur on June 1, 1985-Disposition not occurring on June 1, 1985 -- Sale of Goods Act, R.S.A. 1985, c. S-2 -- Income Tax Act, S.C. 1970-71-72, c. 63, ss. 13(21)(c), 54(c).