Barejo – Tax Court of Canada issues a modified answer in order to accommodate an appeal to the FCA

Barejo Holdings indicated that notes held by a BVI open-ended investment fund constituted debt for purposes of the Act. The appeal from this decision was dismissed at 2016 FCA 304 on the grounds that the Rule 58 question posed to the Tax Court was whether the notes were debts for purposes of the Act rather than for purposes of s. 94.1 thereof.

The parties now jointly referred a question to the Tax Court, which was the same as before except that it asked whether the notes constituted debt for purposes of s. 94.1(1)(a). After noting that both parties wanted him to issue this amended answer to “allow them to have the reasons for my decision reviewed by the Federal Court of Appeal” Boyle J stated: “I am prepared to oblige them.”

Neal Armstrong. Summary of Barejo Holdings ULC v. The Queen, 2018 TCC 200 under s. 94.1(1)(a).