Lavoie v. The Queen, 95 DTC 673, [1995] 2 CTC 2709 (TCC) -- summary under Subsection 15(2.4)

By services, 28 November, 2015

Before finding that a demand promissory note signed by the taxpayer to evidence a loan made to him by a corporation he controlled did not represent a bona fide arrangement for repayment within a reasonable time, Lamarre Proulx TCJ. referred to the Perlingieri case (93 DTC 158) and stated (at p. 675):

"It is clear that an important feature of the Appellants's legal situation regarding the demand note signed by him is that he owned 98% of the voting shares of the corporation from which he had obtained the loan. In such circumstances, it is impossible to consider a demand loan as a binding agreement between the corporation and its debtor."

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