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May 23, 2013
Tax News Flash - May 23, 2013
The decision of the Supreme Court of Canada (“SCC
”) in Daishowa-Marubeni International Ltd. v. Canada
, 2013 SCC 29, was released on May 23, 2013, reversing the decision of the Federal Court of Appeal. The issue on appeal to the SCC was whether or not the cost of certain reforestation obligations assumed by a purchaser in connection with the acquisition of certain forest tenures were to be included in computing the vendor’s proceeds of disposition in respect of the sale of the tenures. The key question was whether the obligations were “embedded” in the property or separate or severable from the property.