Cases
Stewart v. Canada, 2002 DTC 6969, 2002 SCC 46, [2002] 2 S.C.R. 645
Before finding that the taxpayer was not required to establish that he had a reasonable expectation of profit ("REOP") with respect to four rental condominium units held by him, the Court stated (at para. 47) that:
"The REOP test has been applied independently of provisions of the Act to second-guess bona fide commercial decisions of the taxpayer and therefore runs afoul of the principle that courts should avoid judicial rule-making in tax law ... ."
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | not tainted by capital gains motivation | 115 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | "business" has its broad common law definition | 95 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Personal or Living Expenses | 12 | |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | no reasonable expectation of profit test if no personal element | 353 |
Canderel Ltd. v. Canada, 98 DTC 6100, [1998] 1 S.C.R. 147, [1998] 2 C.T.C. 35
Iacobucci J found that it was inappropriate to require the amortization over time of tenant inducement payments made by the taxpayer given that, to attempt to match such expenditures with the diverse benefits created, some immediate, and some deferred, would “constitute judicial legislation of a very intrusive variety” (para. 62) and that “an artificial and arbitrary solution to impose the matching principle, as a matter of law, upon circumstances where its application quite evidently creates serious difficulty” (para. 63).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 105 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | 57 | |
| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | not following matching principle accorded with well-accepted business practices | 153 |
| Tax Topics - Income Tax Act - Section 9 - Timing | lease inducement payments currently deductible | 124 |
| Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius | inference made from narrow scope of s. 18(9) | 34 |