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He determined that Gill Farms was earning a “negative gross profit” taking into consideration its wage expense as the only variable expense. ... Turgeon stated she listed in detail those matters she felt required consideration by a Rulings Officer in the course of arriving at a decision on insurability ... I will say nothing about such cases, as different considerations may apply to them: see C & B Woodcraft Ltd. v. ...

As the Respondent conceded that the Appellant met the requirements of subparagraph 95(2)(l)(iv), the business of CCG during the relevant period is excepted from the application of paragraph 95(2)(l). [167]    In light of this conclusion, it is not necessary for me to determine if the business of CCG was carried on by CCG as a trust company the activities of which were regulated under the laws of Barbados. [168]    Before concluding, I note that in reaching the foregoing conclusion I have taken into account the Respondent’s suggestion that the so-called “ conduit ” nature of the structure is a relevant consideration in the interpretation of paragraph 95(2)(l). [169]    First, there is simply no evidence that the arrangement involved a “ conduit ” in any sense of that word. ... (a) interest that would, by virtue of paragraph 81(1)(m), not be included in computing the income of the affiliate if it were resident in Canada, (b) a dividend from another foreign affiliate of the taxpayer, (c) a taxable dividend to the extent that the amount thereof would, if the dividend were received by the taxpayer, be deductible by the taxpayer under section 112, or (d) any amount included because of subsection 80.4(2) in the affiliate’s income in respect of indebtedness to another corporation that is a foreign affiliate of the taxpayer or of a person resident in Canada with whom the taxpayer does not deal at arm’s length, For taxation years of a foreign affiliate of a taxpayer that begin after 2008, the description of A reads: [157] A is the amount that would, if section 80 did not apply to the affiliate for the year or a preceding taxation year, be the total of all amounts, each of which is the affiliate’s income for the year from property, the affiliate’s income for the year from a business other than an active business or the affiliate’s income for the year from a non-qualifying business of the affiliate, in each case that amount being determined as if each amount described in clause (2)(a)(ii)(D) that was paid or payable, directly or indirectly, by the affiliate to another foreign affiliate of the taxpayer or of a person with whom the taxpayer does not deal at arm’s length were nil where an amount in respect of the income derived by the other foreign affiliate from that amount that was paid or payable to it by the affiliate was added in computing its income from an active business, other than (a) interest that would, by virtue of paragraph 81(1)(m), not be included in computing the income of the affiliate if it were resident in Canada, (b) a dividend from another foreign affiliate of the taxpayer, (c) a taxable dividend to the extent that the amount thereof would, if the dividend were received by the taxpayer, be deductible by the taxpayer under section 112, or (d) any amount included because of subsection 80.4(2) in the affiliate’s income in respect of indebtedness to another corporation that is a foreign affiliate of the taxpayer or of a person resident in Canada with whom the taxpayer does not deal at arm’s length, A.1 is twice the total of all amounts included in computing the affiliate’s income from property or businesses (other than active businesses) for the year because of subsection 80(13), A.2 is the amount determined for G in respect of the affiliate for the preceding taxation year, B is the total of all amounts each of which is the portion of the affiliate’s income (to the extent that the income is not included under the description of A) for the year, or of the affiliate’s taxable capital gain for the year that can reasonably be considered to have accrued after its 1975 taxation year, from a disposition of property (a) that is not, at the time of disposition, excluded property of the affiliate, or (b) that is, at the time of disposition, excluded property of the affiliate, if any of paragraphs (2)(c), (d) and (d. 1), subparagraph (2)(e)(i) and paragraph 88(3)(a) applies to the disposition, [158] C is, where the affiliate is a controlled foreign affiliate of the taxpayer, the amount that would be required to be included in computing its income for the year if (a) subsection 94.1(1) were applicable in computing that income, (b) the words “ earned directly by the taxpayer ” in that subsection were replaced by the words “ earned by the person resident in Canada in respect of whom the taxpayer is a foreign affiliate ”, (c) the words “ other than a controlled foreign affiliate of the taxpayer or a prescribed non-resident entity ” in paragraph 94.1(1)(a) were replaced by the words “ other than a prescribed non-resident entity or a controlled foreign affiliate of a person resident in Canada of whom the taxpayer is a controlled foreign affiliate ”, and (d) the words “ other than a capital gain ” in paragraph 94.1(1)(g) were replaced by the words “ other than any income that would not be included in the taxpayer’s foreign accrual property income for the year if the value of C in the definition “foreign accrual property income” in subsection 95(1) were nil and other than a capital gain ”, For taxation years of a foreign affiliate of a taxpayer from 2003 to 2008, the description of D would read: D is the total of the affiliate’s losses for the year from property and businesses (other than active businesses) determined as if there were not included in the affiliate’s income any amount described in any of paragraphs (a) to (d) of the description of A and as if each amount described in clause (2)(a)(ii)(D) that was paid or payable, directly or indirectly, by the affiliate to another foreign affiliate of either the taxpayer or a person with whom the taxpayer does not deal at arm’s length were nil where an amount in respect of the income derived by the other foreign affiliate from that amount that was paid or payable to it by the affiliate was added in computing its income from an active business, For taxation years of a foreign affiliate of a taxpayer that begin after 2008, the description of D reads: [159] D is the total of all amounts, each of which is the affiliate’s loss for the year from property, the affiliate’s loss for the year from a business other than an active business of the affiliate or the affiliate’s loss for the year from a non-qualifying business of the affiliate, in each case that amount being determined as if there were not included in the affiliate’s income any amount described in any of paragraphs (a) to (d) of the description of A and as if each amount described in clause (2)(a)(ii)(D) that was paid or payable, directly or indirectly, by the affiliate to another foreign affiliate of the taxpayer or of a person with whom the taxpayer does not deal at arm’s length were nil where an amount in respect of the income derived by the other foreign affiliate from that amount that was paid or payable to it by the affiliate was added in computing its income from an active business, Prior to February 27, 2004 in the relevant period, the description of E in effect would have been: [160] E is the amount of the affiliate’s allowable capital losses for the year from dispositions of property (other than excluded property) that can reasonably be considered to have accrued after its 1975 taxation year, As applicable to dispositions of property by a foreign affiliate that occur after February 27, 2004 but in taxation years of the foreign affiliate that end before August 20, 2011, the description of E in effect would be: [161] E is the amount of the affiliate’s allowable capital losses for the year from dispositions of property (other than excluded property and property in respect of which an election is made by the taxpayer under subsection 88(3.3)) that can reasonably be considered to have accrued after its 1975 taxation year, F is the prescribed amount for the year, G is the amount, if any, by which (a) the total of amounts determined for A.1 and A.2 in respect of the affiliate for the year exceeds (b) the total of all amounts determined for D to F in respect of the affiliate for the year, and H is As applicable in respect of years up until 2006, paragraph (a) of the description of H read: (a) where the affiliate was a member of a partnership at the end of the fiscal period of the partnership that ended in the year and the partnership received a dividend at a particular time in that fiscal period from a corporation that was, for the purposes of sections 93 and 113, a foreign affiliate of the taxpayer at that particular time, the portion of the amount of that dividend that is included in the value of A in respect of the affiliate for the year and that is deemed by paragraph 93.1(2)(a) to have been received by the affiliate for the purposes of sections 93 and 113, and   As applicable in respect of taxation years of a foreign affiliate of a taxpayer that end after 2006, paragraph (a) of the description of H reads: [162] (a) if the affiliate was a member of a partnership at the end of the fiscal period of the partnership that ended in the year and the partnership received a dividend at a particular time in that fiscal period from a corporation that would be, if the reference in subsection 93.1(1) to “ corporation resident in Canada ” were a reference to “ taxpayer resident in Canada ”, a foreign affiliate of the taxpayer for the purposes of sections 93 and 113 at that particular time, then the portion of the amount of that dividend that is included in the value determined for A in respect of the affiliate for the year and that would be, if the reference in subsection 93.1(2) to “ corporation resident in Canada ” were a reference to “ taxpayer resident in Canada ”, deemed by paragraph 93.1(2)(a) to have been received by the affiliate for the purposes of sections 93 and 113, and (b) in any other case, nil; foreign accrual tax “ foreign accrual tax ” applicable to any amount included in computing a taxpayer’s income by virtue of subsection 91(1) for a taxation year in respect of a particular foreign affiliate of the taxpayer means (a) the portion of any income or profits tax that was paid by (i) the particular affiliate, or (ii) any other foreign affiliate of the taxpayer in respect of a dividend received from the particular affiliate and that may reasonably be regarded as applicable to that amount, and (b) any amount prescribed in respect of the particular affiliate to be foreign accrual tax applicable to that amount; foreign affiliate “ foreign affiliate ”, at any time, of a taxpayer resident in Canada means a non-resident corporation in which, at that time, (a) the taxpayer’s equity percentage is not less than 1%, and (b) the total of the equity percentages in the corporation of the taxpayer and of each person related to the taxpayer (where each such equity percentage is determined as if the determinations under paragraph (b) of the definition “ equity percentage ” in subsection (4) were made without reference to the equity percentage of any person in the taxpayer or in any person related to the taxpayer) is not less than 10%, except that a corporation is not a foreign affiliate of a non-resident-owned investment corporation; foreign bank “ foreign bank ” means an entity that would be a foreign bank within the meaning assigned by the definition of that expression in section 2 of the Bank Act if (a) that definition were read without reference to the portion thereof after paragraph (g) thereof, and (b) the entity had not been exempt under section 12 of that Act from being a foreign bank; income from an active business Applicable for years from 2003 to 2008: “ income from an active business ” of a foreign affiliate of a taxpayer for a taxation year includes, for greater certainty, any income of the affiliate for the year that pertains to or is incident to that business but does not include (a) other income that is its income from property for the year, or (b) its income for the year from a business that is deemed by subsection (2) to be a business other than an active business carried on by the affiliate; Applicable in respect of taxation years of a foreign affiliate of a taxpayer after 2008: [163] “ income from an active business ” of a foreign affiliate of a taxpayer for a taxation year includes the foreign affiliate’s income for the taxation year that pertains to or is incident to that active business but does not include (a) the foreign affiliate’s income from property for the taxation year, (b) the foreign affiliate’s income for the taxation year from a business that is deemed by subsection (2) to be a business other than an active business of the foreign affiliate, or (c) the foreign affiliate’s income from a non-qualifying business of the foreign affiliate for the taxation year; income from property Applicable for years from 2003 to 2008: “ income from property ” of a foreign affiliate of a taxpayer for a taxation year includes its income for the year from an investment business and its income for the year from an adventure or concern in the nature of trade, but, for greater certainty, does not include its income for the year that is because of subsection (2) included in its income from an active business or in its income from a business other than an active business; Applicable in respect of taxation years of a foreign affiliate of a taxpayer after 2008: [164] “ income from property ” of a foreign affiliate of a taxpayer for a taxation year includes the foreign affiliate’s income for the taxation year from an investment business and the foreign affiliate’s income for the taxation year from an adventure or concern in the nature of trade, but does not include (a) the foreign affiliate’s income for the taxation year from a business that is deemed by subsection (2) to be a business other than an active business of the foreign affiliate, or (b) the foreign affiliate’s income for the taxation year that pertains to or is incident to (i) an active business of the foreign affiliate, or (ii) a non-qualifying business of the foreign affiliate; investment business Applicable for years from 2003 to 2008, the opening words of the definition of “ investment business ” were: “ investment business ” of a foreign affiliate of a taxpayer means a business carried on by the affiliate in a taxation year (other than a business deemed by subsection (2) to be a business other than an active business carried on by the affiliate) the principal purpose of which is to derive income from property (including interest, dividends, rents, royalties or any similar returns or substitutes therefor), income from the insurance or reinsurance of risks, income from the factoring of trade accounts receivable, or profits from the disposition of investment property, unless it is established by the taxpayer or the affiliate that, throughout the period in the year during which the business was carried on by the affiliate, As applicable in respect of taxation years of a foreign affiliate of a taxpayer after 2008, the opening words of the definition of “ investment business ” were: [165] “investment business” of a foreign affiliate of a taxpayer means a business carried on by the foreign affiliate in a taxation year (other than a business deemed by subsection (2) to be a business other than an active business carried on by the foreign affiliate and other than a non-qualifying business of the foreign affiliate) the principal purpose of which is to derive income from property (including interest, dividends, rents, royalties or any similar returns or substitutes for such interest, dividends, rents, royalties or returns), income from the insurance or reinsurance of risks, income from the factoring of trade accounts receivable, or profits from the disposition of investment property, unless it is established by the taxpayer or the foreign affiliate that, throughout the period in the taxation year during which the business was carried on by the foreign affiliate, For all the years in the relevant period, the rest of the definition of “ investment business ” in effect was as follows: (a) the business (other than any business conducted principally with persons with whom the affiliate does not deal at arm’s length) is (i) a business carried on by it as a foreign bank, a trust company, a credit union, an insurance corporation or a trader or dealer in securities or commodities, the activities of which are regulated under the laws (A) of each country in which the business is carried on through a permanent establishment in that country and of the country under whose laws the affiliate is governed and any of exists, was (unless the affiliate was continued in any jurisdiction) formed or organized, or was last continued, (B) of the country in which the business is principally carried on, or (C) if the affiliate is related to a non-resident corporation, of the country under whose laws that non-resident corporation is governed and any of exists, was (unless that non-resident corporation was continued in any jurisdiction) formed or organized, or was last continued, if those regulating laws are recognized under the laws of the country in which the business is principally carried on and all of those countries are members of the European Union, or (ii) the development of real estate for sale, the lending of money, the leasing or licensing of property or the insurance or reinsurance of risks, (b) either (i) the affiliate (otherwise than as a member of a partnership) carries on the business (the affiliate being, in respect of those times, in that period of the year, that it so carries on the business, referred to in paragraph (c) as the “ operator ”), or (ii) the affiliate carries on the business as a qualifying member of a partnership (the partnership being, in respect of those times, in that period of the year, that the affiliate so carries on the business, referred to in paragraph (c) as the “ operator ”), and (c) the operator employs (i) more than five employees full time in the active conduct of the business, or (ii) the equivalent of more than five employees full time in the active conduct of the business taking into consideration only (A) the services provided by employees of the operator, and (B) the services provided outside Canada to the operator by any one or more persons each of whom is, during the time at which the services were performed by the person, an employee of (I) a corporation related to the affiliate (otherwise than because of a right referred to in paragraph 251(5)(b)), (II) in the case where the operator is the affiliate, 1. a corporation (referred to in this subparagraph as a “ providing shareholder ”) that is a qualifying shareholder of the affiliate, 2. a designated corporation in respect of the affiliate, or 3. a designated partnership in respect of the affiliate, and (III) in the case where the operator is the partnership described in subparagraph (b)(ii), 1. any person (referred to in this subparagraph as a “ providing member ”) who is a qualifying member of that partnership, 2. a designated corporation in respect of the affiliate, or 3. a designated partnership in respect of the affiliate, if the corporations referred to in subclause (B)(I) and the designated corporations, designated partnerships, providing shareholders or providing members referred to in subclauses (B)(II) and (III) receive compensation from the operator for the services provided to the operator by those employees the value of which is not less than the cost to those corporations, partnerships, shareholders or members of the compensation paid or accruing to the benefit of those employees that performed the services during the time at which the services were performed by those employees; investment property “ investment property ” of a foreign affiliate of a taxpayer includes (a) a share of the capital stock of a corporation other than a share of another foreign affiliate of the taxpayer that is excluded property of the affiliate, (b) an interest in a partnership other than an interest in a partnership that is excluded property of the affiliate, (c) an interest in a trust other than an interest in a trust that is excluded property of the affiliate, (d) indebtedness or annuities, (e) commodities or commodities futures purchased or sold, directly or indirectly in any manner whatever, on a commodities or commodities futures exchange (except commodities manufactured, produced, grown, extracted or processed by the affiliate or a person to whom the affiliate is related (otherwise than because of a right referred to in paragraph 251(5)(b)) or commodities futures in respect of such commodities), (f) currency, (g) real estate, (h) Canadian and foreign resource properties, (i) interests in funds or entities other than corporations, partnerships and trusts, and (j) interests or options in respect of property that is included in any of paragraphs (a) to (i); lending of money “ lending of money ” by a person (for the purpose of this definition referred to as the “ lender ”) includes (a) the acquisition by the lender of trade accounts receivable (other than trade accounts receivable owing by a person with whom the lender does not deal at arm’s length) from another person or the acquisition by the lender of any interest in any such accounts receivable, (b) the acquisition by the lender of loans made by and lending assets (other than loans or lending assets owing by a person with whom the lender does not deal at arm’s length) of another person or the acquisition by the lender of any interest in such a loan or lending asset, (c) the acquisition by the lender of a foreign resource property (other than a foreign resource property that is a rental or royalty payable by a person with whom the lender does not deal at arm’s length) of another person, and (d) the sale by the lender of loans or lending assets (other than loans or lending assets owing by a person with whom the lender does not deal at arm’s length) or the sale by the lender of any interest in such loans or lending assets; and for the purpose of this definition, the definition “ lending asset ” in subsection 248(1) shall be read without the words “ but does not include a prescribed property ”; participating percentage “ participating percentage ” of a particular share owned by a taxpayer of the capital stock of a corporation in respect of any foreign affiliate of the taxpayer that was, at the end of its taxation year, a controlled foreign affiliate of the taxpayer is (a) where the foreign accrual property income of the affiliate for that year is $5,000 or less, nil, and (b) where the foreign accrual property income of the affiliate for that year exceeds $5,000, (i) where the affiliate and each corporation that is relevant to the determination of the taxpayer’s equity percentage in the affiliate has only one class of issued shares at the end of that taxation year of the affiliate, the percentage that would be the taxpayer’s equity percentage in the affiliate at that time on the assumption that the taxpayer owned no shares other than the particular share (but in no case shall that assumption be made for the purpose of determining whether or not a corporation is a foreign affiliate of the taxpayer), and (ii) in any other case, the percentage determined in prescribed manner; permanent establishment [166] “ permanent establishment ” has the meaning assigned by regulation; relevant tax factor [167] “ relevant tax factor ”, of a person or partnership for a taxation year, means (a) in the case of a corporation, or of a partnership all the members of which, other than non-resident persons, are corporations, the quotient obtained by the formula 1/(A- B) where A is the percentage set out in paragraph 123(1)(a), and B is (i) in the case of a corporation, the percentage that is the corporation’s general rate reduction percentage (as defined by section 123.4) for the taxation year, and (ii) in the case of a partnership, the percentage that would be determined under subparagraph (i) in respect of the partnership if the partnership were a corporation whose taxation year is the partnership’s fiscal period, and (b) in any other case, 2.2; trust company “ trust company ” includes a corporation that is resident in Canada and that is a loan company as defined in subsection 2(1) of the Canadian Payments Association Act. ...

According to the evidence, no actions of the Appellant during the years in question with respect to these two activities lead the Court to conclude that a business existed at all, without further substantial actions having been taken by the Appellant to put in to place some kind of activity which would at least have enabled the Court to conclude that some income might have been obtained therefrom. [268]        That leaves for consideration by the Court the more difficult and substantial issue with respect to the expenses claimed in relation to the fishing activity, which undoubtedly was a business during the years in question. [269]        The point raised by counsel for the Respondent that it is the Appellant's duty to keep accurate records of his income and expenses under the provisions of section 230 of the Act is well taken. ... It would be extremely unjust, as far as this Court is concerned, for the Minister to assign to the Appellant all of the income that he did and not give further consideration to the deductibility of many of these expenses, which were obviously expended for the purpose of gaining or producing income from a business. [285]        The appeals are allowed and the matters are referred back to the Minister for reassessment and reconsideration based upon the Court's finding, that on the balance of probabilities, the Appellant is entitled to claim the following further deductions during the years in question. [286]        For the taxation year 1988, vessel repairs, $11,776 crew share $21,063; for the taxation 1989, vessel repairs $100,065, crew share $22,826, food $3,637. ...

In particular, it is limited by “the objective of the provision, the nature of the order and the circumstances in which the order is made” and must be exercised in a manner “consistent with the spirit of the whole of the provisions in question” (paras. 27-28). [107]                      These considerations led Deschamps J. to conclude that an offender’s inability to pay cannot be taken into account when deciding whether to impose a fine (see paras. 1, 37, and 48). [8] Further, the mere fact that property has been used cannot justify a refusal to impose a fine (see para. 32). ... With respect, the bail context is far removed from the present context, and the considerations at play are very different. ...

Furthermore, it was satisfied that the punitive damages had been amply justified: [11]   I note, amongst other considerations, the judge’s findings that the defendants were motivated by profit; the vulnerability to, and erosion of, the plaintiffs trade-mark rights arising from counterfeiting and infringement; the defendants’ attempts to mislead the Court; the fraudulent transfer, after the filing of the Statement of Claim, of ownership of the defendants’ company to avoid liability; the defendants’ recidivist conduct in light of previous orders in respect of the same matter; the defendants’ awareness of the unlawful nature of the activity; the scope of the infringement; the sale of infringing articles after filing and service of the Statement of Claim; the defendants’ failure to produce any records; and, the judge’s conclusion that the infringement was continuous and deliberate. ... The level of blameworthiness may be influenced by many factors, but some of the factors noted in a selection of Canadian cases include: (1)   whether the misconduct was planned and deliberate: … (2)   the intent and motive of the defendant: … (3)   whether the defendant persisted in the outrageous conduct over a lengthy period of time: … (4)   whether the defendant concealed or attempted to cover up its misconduct: … (5)   the defendant’s awareness that what he or she was doing was wrong: … (6)   whether the defendant profited from its misconduct: … (7)   whether the interest violated by the misconduct was known to be deeply personal to the plaintiff … [Italics in original and reference to authorities omitted.] [185]   In a case close to our case, the Federal Court of Appeal (Lam Chan Kee, 2017 FCA 38) noted the following factors used to ascertain the blameworthiness where four infringements had been assessed compensatory damages of $64,000 (4 infringements X $8,000 (retail) X 2 plaintiffs): [11]   I note, amongst other considerations, the judge’s findings that the defendants were motivated by profit; the vulnerability to, and erosion of, the plaintiffs trade-mark rights arising from counterfeiting and infringement; the defendants’ attempts to mislead the Court; the fraudulent transfer, after the filing of the Statement of Claim, of ownership of the defendants’ company to avoid liability; the defendants’ recidivist conduct in light of previous orders in respect of the same matter; the defendants’ awareness of the unlawful nature of the activity; the scope of the infringement; the sale of infringing articles after filing and service of the Statement of Claim; the defendants’ failure to produce any records; and, the judge’s conclusion that the infringement was continuous and deliberate. ...