Curlett v. MNR, 61 DTC 1210 (Ex Ct), briefly aff'd 62 DTC 1320, [1967] CTC 62, [1967] SCR 280

The taxpayer regularly made mortgage loans at a discount and then sold them for their face amount to his company. In dealing with a submission that the mortgage discounts were not income to the taxpayer because he had an obligation, as a director of his company, to account to that company for the profits, Dumoulin J. noted that the taxpayer "had not evinced discernible signs of being prompted by any lurking urge to discharge such a belatedly invoked obligation to refund the" company. His profits were taxable.

The taxpayer regularly made mortgage loans at a 15% discount from the face amount and then, within a month of the loan, sold the mortgage loan to his company for the face amount. The discounts were received by him from his company as profits from a business carried on by him.