Income Tax
Income Calculation
Deductions
Appeal from Tax Court of Canada decision (2006 TCC 638) allowing appeal by General Motors of Canada Ltd. (GM) from reassessment for 1996 taxation year, concluding GM entitled to deduct unexpended portion of Special Canadian Contingency Fund (SCCF) established between GM, bargaining agent—In F.C.A. decision pertaining to GM’s 1995 taxation year, unexpended portion found to be contingent liability (and thus not deductible) within meaning of Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 18(1)(e)—Dispute as to whether subsequently amended memorandum of understanding between GM, bargaining agent creating absolute liability—T.C.C. erred in finding amendment ambiguous, considering extrinsic evidence —T.C.C. failed to first determine whether amendment ambiguous in legal sense—As wording of amendment not ambiguous, T.C.C. could not consider extrinsic evidence—Unexpended portion of SCCF not deductible—Appeal allowed.
General Motors of Canada Ltd. v. Canada (A-605-06, 2008 FCA 142, Nadon J.A., judgment dated April 21, 2008, 25 pp.)