Canadian Appeals Monitor Information and Commentary on Upcoming and Recent Appeal Court Decisions

This Week at the SCC (22/02/2013)

A Commentary on Recent Legal Developments by the Opinions Group of McCarthy Tétrault LLP

Posted in This Week at the SCC
Anthony Alexander

This week, the Supreme Court of Canada heard arguments in one case likely to be of interest to Canadian businesses and professions.  Judgment was reserved.

The appeal to the Supreme Court is from the ruling in Daishowa-Marubeni International Ltd. v. Her Majesty the Queen, 2011 FCA 267.  At issue is the proper tax treatment of long-term, contingent reforestation liabilities (imposed by statute).  The taxpayer subject to the reforestation liabilities had disposed of the relevant operating assets.  The purchaser of those assets has assumed responsibility for the liabilities.  The Federal Court of Appeal ruled that the purchaser’s assumption of the taxpayer’s liability constituted consideration which ought to have been included in the taxpayer’s proceeds of disposition in the amount agreed upon by the parties.  The taxpayer appealed to the Supreme Court.  The oral arguments before the Court may be viewed here, and the written arguments may be viewed here.

The McCarthy Tétrault Opinions Group consists of members of the firm’s litigation department whose practices focus on written advocacy and the provision of strategic advice and opinions in the context of complex business disputes and transactions.  The members of the Opinions Group are Anthony Alexander, Martin Boodman, Brandon Kain, Hovsep Afarian and Kirsten Thompson.