The taxpayer incurred various expenses in connection with communicating with its shareholders respecting B.C. legislation under which its shares of a public utility company (which represented its principal asset) were expropriated and respecting the progress of its successful action to have such legislation declared ultra vires. In finding such expenses to be deductible, Martland J. noted that they did not represent capital expenditures because they were not laid out to preserve a capital asset, and stated (at p. 5264):
The reasonable furnishing of information from time to time to shareholders by a company respecting its affairs is properly a part of the carrying on of the company's business of earning income and a corporate taxpayer should be entitled to deduct the reasonable expenses involved as an expense of doing business.