Morguard - Federal Court of Appeal finds that break fee was taxable

A break fee received by Morguard was fully taxable as business income.  This essentially followed from the finding of fact by Boyle J in the Tax Court that Morguard's ordinary business activities included the making of business acquisitions - so feel free to argue that any break fee received by you arose only in the course of an investment undertaking!

Neal Armstrong.  Summary of Morguard Corporation v. The Queen, 2012 FCA 306 under s. 9 - exempt receipts.