Urquhart – Federal Court of Appeal finds an implied obligation to incur costs to earn enhanced commissions under an oral employment contract of a salesman

Rennie JA found that on an objective appreciation of the arrangements (not reduced to writing) between a Ford dealership and a salesman, including reasonable inferences from the commission arrangements, the salesman was required to bear some costs of vehicle transport and of vehicle accessories, so that such costs were deductible by him under s. 8(1)(f)(i). The disallowance of deductions for such costs by the Tax Court was reversed.

Neal Armstrong. Summary of Urquhart v. The Queen, 2016 FCA 76 under s. 8(1)(f).