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  [2]                The Tax Court Judge had found that the appellant’s writing was not a source of business income for the purposes of the Act and furthermore that the appellant had not established a sufficient connection between the writing activities of the appellant and his legal fees to support a finding that such fees would be deductible, in any event ... We are all of the view that the appellant has failed to demonstrate that the Tax Court Judge made any palpable and overriding error with respect to:   a)         his finding that the appellant did not have a source of business income in relation to his writing articles for the Heads Up newspaper; or   b)         his finding, in any event, that the appellant failed to establish a connection between the legal fees and this writing activity that would support a finding that these legal fees were incurred for the purpose of earning income from this activity ...

The Canada Revenue Agency assessed the appellant for the 2002, 2003 and 2004 taxation years on the basis that she had not incurred any amounts as expenses in connection with the carrying on of a business. ... The only evidence introduced by the appellant was her general statement that the Statements of Business Activities produced in connection with the business accurately reflected the expenses that were incurred (paragraph 28). 2.       ...

It is argued that the Plaintiff’s main activity is the provision of services and that the production of goods in connection therewith is only incidental to the service being provided. ... As counsel for the Plaintiff pointed out, under such a regime, a manufacturer or processor of a product (eg: a chemical fertilizer) who also provided a service in connection therewith (eg: spreading the fertilizer for his customers) would be denied the processing tax deduction. ...

S.C. 1970-71-72, c. 63) (the"Act") are as follows: 40. (2) Notwithstanding subsection (1), (f) a taxpayer's gain or loss from the disposition of (i) a chance to win a prize, or (ii) a right to receive an amount as a prize, in connection with a lottery scheme is nil; 52. (4) Where any property has been acquired by a taxpayer at any time after 1971 as a prize in connection with a lottery scheme, he shall be deemed to have acquired the property at a cost to him equal to its fair market value at that time. 56. (1) Without restricting the generality of section 3, there shall be included in computing the income of a taxpayer for a taxation year, (d) any amount received by the taxpayer in the year as an annuity payment except to the extent that the payment is otherwise required to be included in computing his income for the year; 60. ... Even if, as the learned judge of the Trial Division seems to have thought, each monthly payment of $1,000 was a prize acquired by the respondent in connection with the lottery scheme, a proposition as to which I have some difficulty as appears below, that still does not avail to make the payments exempt from income tax if in fact they have the quality of income. ...

“commercial activity” “commercial activity” of a person means (a) a business carried on by the person (other than a business carried on without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the business involves the making of exempt supplies by the person, (b) an adventure or concern of the person in the nature of trade (other than an adventure or concern engaged in without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the adventure or concern involves the making of exempt supplies by the person, and (c) the making of a supply (other than an exempt supply) by the person of real property of the person, including anything done by the person in the course of or in connection with the making of the supply; [Emphasis added.] « activité commerciale »  « activité commerciale » Constituent des activités commerciales exercées par une personne : a) l’exploitation d’une entreprise (à l’exception d’une entreprise exploitée sans attente raisonnable de profit par un particulier, une fiducie personnelle ou une société de personnes dont l’ensemble des associés sont des particuliers), sauf dans la mesure où l’entreprise comporte la réalisation par la personne de fournitures exonérées; b) les projets à risque et les affaires de caractère commercial (à l’exception de quelque projet ou affaire qu’entreprend, sans attente raisonnable de profit, un particulier, une fiducie personnelle ou une société de personnes dont l’ensemble des associés sont des particuliers), sauf dans la mesure où le projet ou l’affaire comporte la réalisation par la personne de fournitures exonérées; c) la réalisation de fournitures, sauf des fournitures exonérées, d’immeubles appartenant à la personne, y compris les actes qu’elle accomplit dans le cadre ou à l’occasion des fournitures ... Citing the following passage from Reference re Goods and Service Tax, [1992] 2 S.C.R. 445, they argue that the refusal to take into account the federal tax already paid in connection with the marketing of these lots distorts the character of the GST, transforming it into a federal sales tax: On the question of integration, I am of the opinion that Canada is correct to say that to sever the revenue raising portions of  the GST Act from those portions which do not raise revenue would be to change the character of the tax fundamentally, from a value-added tax to a federal retail sales tax.   ... Counsel for the Minister stated to this Court that the Ministère du Revenu du Québec had, at all times, in connection with the files relating to the lots at issue, recognized that the appellants were carrying on a business, but emphasized that this did not mean that the appellants were necessarily entitled to all of the deductions that they had claimed at any given time ...

Canada (1996), 96 D.T.C. 1520, show a connection between the reserve and the investment income ... In such a context, the other connection factors are of little importance. ... Horn deals with employment income, not investment income, and does not in the least change the analysis of the connection factors that the Court must carry out ...

Accordingly, a deduction cannot be so far removed from its corresponding income stream as to render its connection to the anticipated income tenuous at best. ... The determination of whether there is sufficient connection between the taxpayer and the income earning potential of the debtor will be decided on a case by case basis depending on the particular circumstances involved. ... While the Respondent would not have received dividend income directly from USCO from 1981-1982, I am satisfied that the connection between the loans and the potential dividend income is sufficient in the circumstances of this case to invoke the exclusionary clause in subparagraph 40(2)(g)(ii). ...

In this one way, the connection between Mr. Kelly’s services and the reserves “cannot be overemphasized.” ...   – VII –   [48]            Beware of artificial or abusive connections. ...   [63]            To similar effect, this Court stated the following in Robertson (at paragraph 62):   That the Appellants’ fishing business may have connections with markets off-reserve does not weaken the connection of the resulting income to the Reserve. ...

At all relevant times that work was, to paraphrase clause 122.3(1)(b)(i)(B), in connection with contracts under which his employer carried on business outside Canada with respect to an engineering activity. ... It states that throughout the qualifying period all or substantially all of the duties of employment must be performed "outside Canada", and that the work must be done in connection with one or more contracts under which the employer carries on business "outside Canada". ... Similarly, the OETC enables Canadian employers to reduce their employment costs with respect to foreign contract work, while maintaining the after-tax value of the remuneration their employees receive in connection with such work. [26]            These government publications were provided in an attempt to assist the Court in interpreting section 122.3. ...

It may not always be easy to decide whether an expense has so arisen but it seems to me that the words “in the course of” in paragraph 11(1)(cb) are not a reference to the time when the expenses are incurred but are used in the sense of “in connection with” or “incidental to” or “arising from” and refer to the process of carrying out or the things which must be undertaken to carry out the issuing or selling or borrowing for or in connection with which the expenses are incurred. ... On the other hand I understood counsel to contend that the word bonus was applicable and in this connection there was a reference to the judgment of Lord Greene, MR in Lomax v Dixon, [1943] 2 All ER 255. ... Also in connection with the proposed financing Gerhard W Moog, a shareholder of the respondent, transferred to Traders 5% of the respondent’s outstanding common stock at the total price of $5. ...