Canada v. TCG International Inc.
T-152-94
Gibson J.
22/10/96
8 pp.
Appeal from T.C.C. decision allowing appeal from confirmation of reassessment of income tax payable for 1985-Directing $400,000 in nature of "lease inducement payment" be deleted from defendant's income-Defendant receiving $400,000 cash incentive as inducement to enter lease of premises for head office purposes-Defendant entitled to do with inducement as it in its sole discretion determined-Appeal allowed-Ikea Ltd. v. The Queen (1993), 94 DTC 1112 (T.C.C.) applied-Head office activities and premises where those activities carried on equally integral to business operations of limited company as are wholesale and retail premises-Lease inducement payment income to be included in income in year of receipt-Cases finding in favour of taxpayers, where terms of lease agreements tying lease inducement payments directly to leasehold improvements to be made by tenants, distinguished-Plaintiff not bound by terms of income tax bulletins-That Income Tax Act modified shortly after transaction herein to bring such inducement payments into income not indicating that at relevant time inducement payment not income receipt.