Minister of National Revenue v. Foreign Power Securities Corporation Ltd., 67 DTC 5084, [1967] CTC 116, [1967] S.C.R. 295 -- summary under Shares

By services, 28 November, 2015

The taxpayer acquired shares of two utility companies from its parent at cost. The gains which it realized shortly thereafter were held to be realized on capital account based on a finding of the trial judge that:

"the shares in question were acquired by the respondent as investments to be held as a source of income in the ordinary course of its business as an investment company and that the reason it decided to realize these investments after a comparatively short period of time was that, in the opinion of its responsible officers, the shares had reached a price which was unrealistically high."

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