Devon Canada – Tax Court of Canada finds objecting large corporations need not specify partial expense deductibility in the alternative to full deductibility

Graham J found that if a large corporation objects on the basis that an expense is fully deductible, it is not precluded by the no-new-issue rule in s. 169(2.1) from arguing on appeal that the item is partly deductible in that year, e.g., under s. 20(1)(e). Similarly, when it specifies relief based on the full deduction, it is impliedly requesting pro rata relief if there instead is only partial deductibility.

Neal Armstrong. Summary of Devon Canada Corporation v. The Queen, 2014 TCC 255 under s. 169(2.1).