Tax Interpretations Judicial and CRA interpretations of Canadian tax law and transactional implications

Statutory Interpretation - Purpose

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Cases

Bastion Management Ltd. v. The Queen, 95 DTC 5238 (FCA)

Before finding that the inventory allowance was not available to a commodities future trader who purchased bullion shortly before its year-end on a hedged basis, then reversed its position immediately after its year-end, Linden J.A. stated (p. 5241):

"The provision was not enacted as an incentive for taxpayers to arrange their affairs so as to gain a tax benefit, but to aid those whose affairs had already been arranged in a particular way that led to an unfair tax disadvantage."