| Citation: |
Goff Construction Ltd. v. Canada, 2009 FCA 60, [2009] 3 F.C.R. D-13 |
A-344-08 |
Income Tax
Income Calculation
Appeal from Tax Court of Canada (T.C.C.) decision (2008 T.C.C. 322) dismissing appeal against reassessment of 1999 taxation year including settlement payment in income, as income from business pursuant to Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 9(1)—T.C.C. holding settlement payment intended to compensate appellant for cost award and expenses incurred in seeking reduction thereof—Interpretation, application of surrogatum principle—Where payment intended to replace monies expended by recipient, tax treatment of payment determined by reference to tax treatment of expenditures—T.C.C. correctly applied surrogatum principle—Settlement payment intended to replace capital expenditures which were deductible—Appellant required to include settlement payment in income—Appeal dismissed.
Goff Construction Ltd. v. Canada (A-344-08, 2009 FCA 60, Ryer J.A., judgment dated February 27, 2009, 9 pp.)