No. 678 v. MNR, 60 DTC 45 (TAB)

The taxpayer, which had been a dealer in trucks and cars, ceased operations and, following a change of control, started operating service stations. These were found to be two separate businesses, with the result that losses from the former business could not be carried forward for deduction from the profits of the second business.

The assets of a proprietorship ("Beaver Oil Company") purchased by the taxpayer included "the good will of Beaver Oil Company and the exclusive right to use the name Beaver Oil Company for a period of ten (10) years from the date hereof". In finding that the taxpayer was not entitled to claim capital cost allowance in respect of the $10,000 allocated by the parties to the right to use the name, Mr. Fordham noted (p. 47) that "it is trite law that where, as occurred here, the goodwill of a business is sold to a purchaser, the business name goes with it" and that, characterizing the purchased asset as goodwill, the taxpayer therefore was not entitled to treat it as a Class 14 property. [Followed in Itally-Ho Distributing Co. Ltd. v. MNR, 60 DTC 51 (TAB)]