Aallcann Wood Suppliers Inc. v. The Queen, 94 DTC 1475 (TCC)

The Minister had not been correct in taking the position that because the taxpayer had not requested a loss determination for its 1988 taxation year under s. 152(1.1), it was precluded from challenging the Minister's computation of its 1988 loss for purposes of determining the amount of its taxable income for its 1985, 1986, 1987 and 1989 taxation years.

After a decision to go out of the pulpwood business and into the business of manufacturing fence posts, the taxpayer assigned its contract to supply pulpwood to another company ("Weyerhaeuser") to two companies for valuable consideration. In finding that the receipt was a capital receipt notwithstanding the relatively short remaining term of the contract, Bowman TCJ. stated (p. 1477):

"What was sold was, of course, the contract but it carried with it the benefit, as a matter of reasonable commercial expectation, of being able to stand in the appellant's shoes year after year and obtain a succession of such contracts from Weyerhaeuser. The argument advanced by the respondent is precisely that rejected by Catanach, J. in Metropolitan Taxi Ltd. v. MNR, 67 DTC 5073 ..."