Harvard Properties Inc. v. Canada

canada, canadian, case law, court opinion, canlii, fca, 2026fca142, 2026 fca 142 (canlii), 2026, fca, 142, (canlii), a-388-24; a-382-24, 2026, procedure, procedural fairness, pleadings and issues at trial, whether court decided on a basis not anchored in pleadings, evidence, or parties’ positions, fair market value treated as in dispute despite concessions, failure to give opportunity to adduce valuation evidence, error of law and unfairness found, appeal allowed, assessment vacated, taxation, income tax act, derivative liability, income tax act, s. 160(1), whether transferee liability applies to share sale structure, transfers to non, arm’s length person and limited liability for excess value, after, tax position compared to direct sale, section 160 held not to apply, appeal allowed, assessment vacated, taxation, income tax act, arm’s length dealing, income tax act, ss. 160, 251, whether appellant and abacus group were not dealing at arm’s length, alleged “premium” and “wilfully blind” findings tied to rejected valuation premise, no evidence of arrangement to share unpaid tax liability, palpable and overriding error found, section 160 inapplicable, appeal allowed, cross, appeal dismissed, taxation, income tax act, fair market value consideration, eyeball networks inc. v. canada, income tax act, s. 160, whether consideration must be valued by a “snapshot” at time of transfer, payment of bona fide debt under promissory note, preferred shares and directions, escrow arrangements, trust accounts, fair market value consideration found equal to transfers, assessment vacated, taxation, income tax act, general anti, avoidance rule, deans knight income corp. v. canada, income tax act, s. 245, whether creation and sale of voting shares were avoidance transactions, transactions did not produce alleged tax benefit, no misuse or abuse of s. 160 where arm’s length and full consideration, gaar held not to apply, appeal allowed, assessment vacated, cross, appeal dismissed