Minister of National Revenue v. Freud, 68 DTC 5279, [1968] CTC 438, [1969] SCR 75 -- summary under Inventory

By services, 28 November, 2015

Before finding that the taxpayer has sustained a fully deductible loss on advances which he had made to a business venture, Pigeon J. stated (pp. 5281-5282):

"It must also be noted that the Income Tax Act defines business so as to include 'an adventure or concern in the nature of trade' (section 139(1)(e)). By virtue of this definition, a single operation is to be considered as a business although it is an isolated venture entirely unconnected with the taxpayer's profession or occupation ... Due to the definition of business as including an adventure in the nature of trade, it is unnecessary for an acquisition of shares to be a trading operation rather than an investment that there should be a pattern of regular trading operations".

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