Supreme Court grants leave in MacDonald

The Supreme Court has granted leave to appeal in MacDonald, where the Federal Court of Appeal found that the question of whether a derivative was acquired as a hedge should be determined on an objective basis rather than having substantial regard to whether or not it was the intention of the taxpayer to acquire the derivative as a hedge.

Leave was declined in Rio Tinto (finding that fees incurred by a public board in determining to make a bid, as contrasted to its implementation, were currently deductible).

Neal Armstrong. Summary of The Queen v. MacDonald, 2018 FCA 128, leave granted 21 March 2019, under s. 9 – capital gain v. income – futures/forwards/hedges.