Oceanspan Carriers Ltd. v. The Queen, 87 DTC 5102, [1987] 1 CTC 210 (FCA)

"A corporation which incurs losses from business activities outside Canada when it is neither a resident nor had income from a source in Canada, and thus is not subject to assessment under the Act, is not entitled to deduct such losses to reduce taxable income to nil on income derived after it becomes a Canadian resident."

"When a non-resident corporation whose fiscal period has been the calendar year becomes a resident part way through that fiscal period, and does not change its fiscal period, that becomes its taxation year." A calendar year corporation which became resident in Canada on June 15, 1976 accordingly was not required to prorate its non-capital losses for purposes of paragraph 111(1)(a), with the result that its 1976 loss incurred before June 15 could be carried forward to subsequent taxation years.

"Taxpayer" "refers to resident individuals or corporations who may be liable to pay tax at some time whether or not they are, at any given time, liable therefor." A corporation with no Canadian-source income accordingly was not a "taxpayer" for purposes of s. 111(8)(b), and non-capital losses which it incurred while not a resident corporation could not be carried forward to be deducted from income earned while the corporation was resident in Canada.