Abrametz v. Canada, 2009 DTC 5828, 2009 FCA 111 -- summary under Subsection 39(12)

The Trial Judge erred in implicitly treating the taxpayer's claim for a business investment loss as being governed by s. 39(12). The principal purpose of this provision was merely to loosen the timing requirements for the corporation in question to qualify as a small business corporation. However, in this case, the Trial Judge had been correct in finding that there was insufficient evidence to establish that the corporation carried on an active business, so that it did not qualify as a small business corporation at the relevant times.