An incorporated car dealership (Carl Vine Ltd.) which was owned by an individual (Mr. Vine) and his wife contributed monies to fund the operating losses of a Florida company (W.J.V. Inc.) which was owned by Mr. Vine. Jerome, A.C.J. held:
"[T]he sums advanced to W.J.V. Inc. by Carl Vine Ltd. must be considered as income in the hands of Mr. Vine, as "funds of a corporation appropriated for the benefit of a shareholder" (to paraphrase s. 15(1)(b) or "a payment made pursuant to the direction of a taxpayer to some other person for the benefit of the taxpayer as a benefit the taxpayer desired to have conferred on the other party" (to paraphrase s. 56(2)). Either section has the effect of adding the advances from Carl Vine Ltd. to W.J.V. Inc. as income taxable in the hands of Mr. Vine. This is so, no matter how the monies appeared in the books of either company. ... As for the ultimate decrease in value suffered by Mr. Vine, it is irrelevant, as noted in Boardman and in Guilder News. ..."