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The following is stated, as a general accounting principle, in the Canadian Institute of Chartered Accountants' Handbook (at subsection 1580.45, last paragraph): Discounting may be considered to be an aid in valuation where an asset would not be realized or an obligation would not be discharged in the current operating cycle. ... I see them simply as additional authority on the subject of what is considered reasonable and prudent in a business context. ... It was also submitted on behalf of the appellant that it is the current use, and not the original use of funds which must be considered in determining the deductibility of interest. ...

Analysis:   [7]     It is well established that the cost of travel from a taxpayer’s home to his place of work will be considered personal expenses which will therefore not be deductible. The leading case, which supports the proposition that such travel expenses will not be considered to be incurred in the course of a taxpayer’s work duties, is Ricketts v. ... His home office cannot be considered an extension of the employer’s office and therefore the travel expenses cannot be said to be incurred in travelling from one place of work to another. ...

But at page 768 under the heading "Dispositions by Persons Involved in Securities Industries", the bulletin says, As an extension of the general principles enunciated earlier, and perhaps for greater certainty, paragraph 15 of the bulletin lists four situations in which persons will be considered to earn business income from securities transactions, (1) the taxpayer participates in promotion or underwriting. ... It is attempting, in other words, to decide whether a person would be considered to be in the business of trading in securities, so that the proceeds would be income. ... Any corporation whose prime business activity is trading in shares or debt obligations is also considered to be a trader or dealer in securities. ...

After failing in an attempt to buy the Buffalo Narrows Hotel in October, 1972, he looked at, and considered, the Cumberland House Lodge owned by two lawyers, Messrs Wilson and Rendek of Regina. ... That does not mean to say that as a practising barrister, or any other educated person who knows the ways of the world, he might not have considered at some time that the property might be sold. ... I have considered all of those cases in the short time between the end of argument and the delivery of this judgment and I think that what has now been said disposes of the matter. ...

It is the substance and reality of the transaction that should be considered, rather than the form in which it was expressed. ... Royalties, which are akin to rental payments, have invariably been considered as income since they are either based on the degree of use of the right or on the duration of the use, while a lump sum payment for the absolute transfer of a right, without regard to the use to be made of it, is of its nature considered a capital payment, although it may of course be taxable as income in the hands of the recipient if it is part of that taxpayer’s regular business. ...

  [7]              The Court has previously considered the issue of a common question contained within the case of Skinner Estate v. ... Batalha nor even proposed to him in writing that he should be reassessed or indicated that he was being considered for reassessment. ...   [14]         Therefore, the application is denied by the Court, the question shall not be considered and Docket Number 2011-1994(GST)I, otherwise pending for hearing, should proceed forthwith to a hearing under the Court’s Excise Act, Informal Procedures. ...

However, by the Minister’s Notification dated March 6, 1956, following the respondent’s Notice of Objection, it is stated: “The Honourable the Minister of National Revenue having reconsidered the assessment and having considered the facts and reasons set forth in the Notice of Objection hereby agrees to amend the said assessment to reduce the taxpayer’s income by an amount of $2,000 in respect of second mortgages on property situated at East 8th Street and to allow an amount of $2,856.69 as a deduction from income under the provisions of paragraph (b) of subsection (1) of section 85B of the Act and hereby confirms the said assessment in other respects as having been made in accordance with the provisions of the Act and in particular on the ground that the profit on sale of houses has been correctly included in computing the taxpayer’s income in accordance with the provisions of paragraph (b) of subsection (1) of section 85B of the Act; that subsection (1) of section 24 of the Act is not applicable as the debt was not then payable’.” ... Subsection (1) was derived from subsection (11) of Section 3 of the income War Tax Act, which subsection was considered in the Himmen case (supra) where it was held that builders’ second mortgages fell within that subsection of the Income War Tax Act, and the taxpayer was entitled to have their real value ascertained as at the date they were acquired. ... The amount allowed as a reserve by the Minister is slightly more than 30 per cent of the net profit of the business as computed by him, and in my opinion, in the light of all the facts, it may well be considered as reasonable in every way. ...

Other out of Canada trips were considered to be covered by section 20 of the Act. ... Further, that the distinguishing feature is not whether the expenses are considered to be related to "upline" or "downline" meetings. ... Justice MacKay in Graves, supra, discussed the line of cases in the Tax Court of Canada which considered not only the term convention but facts very similar to the facts in the case at bar. ...

In a judgment released today, this Court dismissed the Triad Gestco appeal (2012 FCA 258) on the basis of the only issue raised in that case, which was whether the taxpayer was entitled to the benefit of subsection 245(4) (the “misuse or abuse rule”) because it may not be reasonably considered that the transactions in issue would result directly or indirectly in a misuse of one or more provisions of the Income Tax Act or in an abuse having regard to those provisions of the Income Tax Act, other than section 245, read as a whole ... That provision reads as follows: 245. (3) An avoidance transaction means any transaction 245. (3) L’opération d’évitement s’entend : (a) that, but for this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or a) soit de l’opération dont, sans le présent article, découlerait, directement ou indirectement, un avantage fiscal, sauf s’il est raisonnable de considérer que l’opération est principalement effectuée pour des objets véritables — l’obtention de l’avantage fiscal n’étant pas considérée comme un objet véritable; (b) that is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit. b) soit de l’opération qui fait partie d’une série d’opérations dont, sans le présent article, découlerait, directement ou indirectement, un avantage fiscal, sauf s’il est raisonnable de considérer que l’opération est principalement effectuée pour des objets véritables — l’obtention de l’avantage fiscal n’étant pas considérée comme un objet véritable ...

Marconi had sold part of its active business for $18,000,000 and the income therefrom was considered by the Supreme Court to be part of the active business. ... The Court considered that the interest payable on the mortgage was to be considered as part and parcel of the active business of the taxpayer. ...