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The Supreme Court considered a number of cases, including M.N.R. v. Freud, [1969] 1 S.C.R. 75; [1968] C.T.C. 438; 68 D.T.C. 5279 (S.C.C.) which it described in these terms: In Freud the outlay was to develop a prototype sports car and to sell it. ... Inc. by Carl Vine Ltd. must be considered as income in the hands of Mr. ... The appropriations can be considered to be a loan or a debt incurred by Mr. ...

Section 160 must be considered as a whole if we are to determine its scope. ... Each case must be considered on its own merits. The Court must examine the evidence of the taxpayer with respect to household expenditures to determine which expenses, if any, are the vital household expenses that may be excluded from the reach of section 160. ... There is accordingly no need to consider the Respondent’s ill-considered suggestion and disregard the notarial act ...

The agreements provided that the cost of these installations would be considered as paid in effect as a prepayment of realty taxes which would be otherwise levied by the city; the developer conveyed the services to the city concurrently with their installation and construction. ... He stated he considered that defendant’s financial statements accorded with generally accepted accounting principles for a company in this sort of business. ... Following the amendments in chapter 63 of S of C 1970-71-72 sections 18(l)(a) and 18(2) read as follows: 18. (1) In computing the income of a taxpayer from a business or property no deduction shall be made in respect of (a) General limitation — an outlay or expense except to the extent that it was made or incurred by the taxpayer for the purpose of gaining or producing income from the business or property. 18. (2) Notwithstanding paragraph 20(1)(c), in computing the taxpayer’s income for a taxation year from a business or property, no deduction shall be made in respect of any amount paid or payable by the taxpayer in the year and after 1971 as, on account or in lieu of payment of, or in satisfaction of, (a) interest on borrowed money used to acquire land, or on an amount payable by him for land, or (b) property taxes (not including income or profits taxes or taxes computed by reference to the transfer of property) paid or payable by him in respect of land to a province or a Canadian municipality, if, having regard to all the circumstances, including the cost to the taxpayer of the land in relation to his gross revenue, if any, therefrom for that or any previous year, the land cannot reasonably be considered to have been, in that year, (c) included in the inventory of a business carried on by the taxpayer, (d) otherwise used in, or held in the course of, carrying on a business carried on by the taxpayer, or (e) held primarily for the purpose of gaining or producing income of the taxpayer from the land for that year, except to the extent that the taxpayer’s gross revenue, if any, from the land for that year exceeds the aggregate of all other amounts deducted in computing his income from the land for that year. ...

It became clear in the cross-examination of Mr Jacobs that the Crown was taking the position the challenged expenses, though considered by the tax department as benefits conferred upon an officer, by reason of their nature were still not deductible by the corporate accused as expenses made to gain income. ... While it is clear from the evidence that Mr German had the use of these vehicles on a considerable number of occasions, it is by no means clear on the evidence that he alone had the possession and use of them, or that they were never utilized for what might be considered business purposes. ... In some cases it was apparent that expenses challenged related to periods of time between conventions considered to be legitimate business endeavours, however, no attempt was made by the Crown to show that in fact there could be no savings in costs by reason of the accused remaining in that area rather than returning to Calgary, a point acknowledged by Mr Jacobs to be a legitimate business decision. ...

Martindale considered fixed-price contracts to be more risky for Dynamic than cost-plus contracts, because of the potential for underestimating time or costs. ... Martindale considered it to be in his interests to be aware of Fording's interests at the same time. ... That expense was disallowed only because the Crown considered Dynamic to be carrying on a personal services business. ...

" It must also be emphasized that section 67 does not refer to related persons, even though the fact that related persons were involved in this matter was one of the factors that the Minister’s auditor considered in applying that section ... ]   [30]     Among the other factors (besides having contributed to the realization of the business ' s profits) that led him to allow the taxpayer's appeal and refuse to apply section 355 of Quebec's Taxation Act (the counterpart of section 67 of the Act), Judge Hamel referred to the following, at pages 111‑12:   [TRANSLATION]   Accordingly, it can be argued that to the extent that the company's finances enable it to pay a bonus, the amounts in question cannot be considered unreasonable.  ...   ... Since the evidence had disclosed that the 15% rate was customary for the type of services involved, the judge considered that rate reasonable. ...

  [18]         Recently Huddart J.A. of the British Columbia Court of Appeal considered the nature of the burden of proof incumbent upon a taxpayer in Northern Properties Corp. v. ... He should instead have considered whether the evidence met the standard of objective reasonability which was required to overcome the onus on the taxpayer … (Emphasis added ... The retained earnings must be examined, potential conflicts between shareholders must be considered, records must be kept, reports must be compiled, resolutions must be drafted, forms must be filed with governments, a report to the tax preparer how to prepare the tax return as a result of the dividends is drafted. ...

Independent contractors, for example, have been found to be employees for purposes of human rights legislation, even though they would not be considered employees in other legal contexts: Canadian Pacific Ltd. v. ... This is reflected in, for example, the duty to render accounts to other partners in order to permit them to have the information they need to participate in workplace decisions and ensure that their interests are adequately considered. ... Supreme Court specifically left open the possibility that nominal “partners” could still be considered employees in exceptional circumstances based on an assessment of the substance of the relationship (p. 446; see also Equal Employment Opportunity Commission v. ...

That meant that the correctness of the assessment of Continental Bank had to be considered (the issue being whether its gain on the disposition of the partnership interest was a capital gain or income). ... Loewen that the Judge erred in refusing to strike the arm's length defence and the contingent liability defence because they are based on factual allegations that the Minister had considered and rejected before assessing, and thus are in substance attempts to avoid the statutory limitation period for reassessments. [54]            This argument is based in part on the premise that taxpayers who have a long history of dealing with tax officials through the audit and objection stages should be entitled to some assurance that issues upon which the taxpayer has apparently prevailed prior to assessment cannot be raised if the assessment is appealed. ... The issuance of a formal judgment in this appeal will be deferred until those submissions are received and considered. ...

.___________________________________________________________________ What is the line which separates the two classes of cases may be difficult to define, and each case must be considered according to its facts; the question to be determined being-- Is the sum of the gain that has been made a mere enhancement of value by realising a security, or is it a gain made in an operation of business in carrying out a scheme for profit-making? ... The more closely a taxpayer's business or occupation is related to real estate transactions, the more likely it is that the income will be considered business income rather than capital gain. ... At page 347 the Court set out the "positive tests" that are indicative of an adventure in the nature of trade, which were originally considered in M.N.R. v. ...