Vogel v. The Queen, 96 DTC 1321 (TCC)

A corporation which previously had earned income from commissions by negotiating contracts for various commodities and that prior to the taxation year in question had become insolvent and reported to the Alberta Corporate Tax Administration that it had ceased operations nonetheless was found to be carrying on business because it still had assets, liabilities and contracts to pursue and some minimal expenses had been incurred as it tried to negotiate contracts on a local basis in Alberta. Accordingly, losses sustained by the taxpayer on loans made to the corporation qualified as business investment losses.

A corporation which previously had earned income from commissions by negotiating contracts for various commodities and that prior to the taxation year in question had become insolvent and reported to the Alberta corporate tax administration that it had ceased operations nonetheless was found to be carrying on business because it still had assets, liabilities and contracts to pursue and some minimal expenses had been incurred as it tried to negotiate contracts on a local basis in Alberta. Accordingly, losses sustained by the taxpayer on loans made to the corporation qualified as business investment losses.