Paragraph 18(1)(b) - Capital outlay or loss


Bennett and White v. The King, 49 DTC 514, [1949] CTC 1, [1949] S.C.R. 287

Before finding that guarantee fees were non-deductible by virtue of s. 6(b) of the Income War Tax Act, Locke J. noted that that provision did not appear in the Act of 1917 but was enacted in 1923, and that it was not taken from the English Act. He also noted that "while the expression 'any payment on account of capital' is capable of meaning any return of capital, I think it obvious that this cannot have been intended since no statutory prohibition of deducting amounts so paid could be required" (p. 516).