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Expenses incurred with a view to potentially earning income from a business generally will be considered to applicable to that business even though, with the benefit of hindsight, they did not contribute to the success of that business (e.g., a loss from fraud, see Ruff). ...

Legal fees incurred in order to challenge a termination of employment or to seek a larger damages payment for termination of employment generally be considered to have been incurred in order to establish an entitlement to a retiring allowance rather than to employee remuneration and, therefore, will be non-deductible under s. 8(1)(b)(Bonsma, Blagdon, MacDonald) (although they may be deductible under s. 60(o.1)). ...

Conversely, under s. 256(6.1)(a), a corporation is considered to be controlled by its parent notwithstanding that ultimate control rests with the grandparent. ... Accordingly, it could be considered that s. 212.3(2) also applies in relation to Parent 1, so that it deems CRIC to pay a $100 dividend to Parent 1 at the investment time. ...

Consequences: CanHoldco is a QSC so that both its shares and those of CRIC qualify as cross-border classes, assuming in the case of CRIC that CanHoldco is not considered to have acquired its shares of CRIC immediately after the investment time. ... No PUC suppression is available under draft s. 212.3(7) unless such PUC is considered to arise "immediately after" the investment time, which may be unclear. ... If this investment is considered to be made at the very time that Amalco came into existence, then the cross-border PUC of its shares immediately after that time will be $120. ...

The Explanatory Notes of the Department of Finance state: This is intended to ensure that the investment by the CRIC in the foreign affiliate results in appropriate consequences under paragraph 212.3(2)(a), which deems the CRIC to pay a dividend equal to the portion of the fair market value of "property transferred" by the CRIC that can "reasonably be considered to relate to" the investment. ...

Accordingly, on a literal reading of the provisions of the Act, the unitholder is considered to dispose of its unit for proceeds of disposition of $15.00, with the result that it does not realize any capital loss that can be utilized to offset against the amount that was subject to Part XIII.2 tax. ...

S. 6 expands the scope of what otherwise would be considered to be income from and office or employment, albeit not radically so. ...

It is unclear whether this establishes a third requirement which must be satisfied in order for amounts to qualify as interest, or whether it reflects the proposition that once an amount has been found to be interest, it will be considered to have accrued for the benefit of the holders of the related debt on a daily pro rata basis over the period of their holding of the debt. ... " Where accrued but unpaid interest owing by a corporation is "paid" by issuing preference shares which have a par value equal to the amount owing but which are worthless, the taxpayer will not be considered to have received the interest (see Praxair). ...

Gains on sales of shares of turnaround companies As discussed above (Loan discounts on purchases of distressed debt), where an entrepreneur acquires the debt of a company in financial difficulty with a view to turning the company around, so that the debt (which was purchased at a substantial discount from the amount owing) may be repaid in his or her hands at a substantial gain, any such gain subsequently realized by him or her will be considered to have arisen from an adventure in the nature of trade, and will be taxable. ... Similarly, where the taxpayer acquires shares of a loss company in order to transfer a profitable business to the company, with a view to realizing a gain on the shares when the (tax-sheltered) profits of the company are distributed as redemption or liquidation proceeds, such shares likely will be considered to have been acquired on income account (Malka, Evans, Bossy). ...

There is not considered to be detrimental reliance by the Agency where there is a subsequent disclosure of facts that would permit it to reassess within a statute-barred period (Cornforth). ...