The taxpayer (“Silber”), a stock broker employed by CIBC Wood Gundy on commission, in 2014 he founded a cycling team, with around 10 professional cyclists, known as "Silber Pro Cycling" ("SPC") through a personal corporation. In 2015 and 2016, he paid SPC $265,000 and $330,302, respectively, in his capacity of principal team sponsor.
The ARQ accepted that the other requirements of TA s. 62 (equivalent to ITA s. 8(1)(f)) (e.g., being required to pay his own expenses and to perform part of his duties away from his employer’s place of business), but denied Silber’s deduction of the sponsorship expenses on the basis that they were not expended by him for the purpose of earning his employment income.
In allowing Silber’s appeal, Richard J noted inter alia that, in return for his sponsorship, Silber obtained exposure for his name and practice in a number of ways including the teams’ name, logo, website name, and both his and his employer’s names being prominently displayed on the cyclists’ clothing. Also, the ARQ also presented no evidence to support its “vague and imprecise allegation that Mr. Silber’s sponsorship expenses [were] unreasonable” (para. 57).