Archambault TCJ. found that losses of the non-resident corporate taxpayer from the operation of a condominium (being its sole investment) were property losses rather than business losses given that the income statement did not evidence any activities of the taxpayer other than those consistent with the passive ownership of the property. Accordingly, the rebuttable presumption that activities within the corporate objects of a taxpayer give rise to business income or loss was rebutted in this instance, and the taxpayer could not reduce a taxable capital gain realized on the ultimate disposition of the property by the application of non-capital losses.
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