Thibeault – Tax Court of Canada finds that a bare boat lease did not qualify as a business

D’Auray J applied a test derived by her from Oke, that a taxpayer’s activities must “surpass those which are usually provided under a lease,” to find that a bare boat lease by an individual of his boat to his company for use by it in operating whale-sighting cruises did not qualify as a business activity under Reg. 1100(17.3)(b), so that his CCA deductions were limited by the leasing property restriction rule. In particular, his distributing pamphlets, constructing a ticketing booth, landscaping around the booth and selecting a caterer, were effected in his capacity of shareholder of the company rather than of lessor.

Neal Armstrong. Summary of Thibeault v. The Queen, 2015 CCI 271, under Reg. 1100(17.3)(b) and 20(1).