65302 British Columbia Ltd. v. Canada, 99 DTC 5799, [1999] 3 SCR 804 -- summary under Improvements v. Repairs or Running Expense

Over-quoted levies paid by the taxpayer to the British Columbia Egg Marketing Board as the result of its deliberate over-production were paid on income account. Iacobucci J. stated (at p. 5813) that "the fact that there was a risk that the quota could be revoked upon failure to pay the fine is no more relevant to this analysis than the fact that if a factory's electricity bill is not paid, there is a risk that the utility company will eventually cut off the power to the factory, thereby putting the existence of the business in jeopardy", and noted that the fine at issue was assessed on a "per day basis and was "meant to remove the profit of over-quota production from the producer".