Stewart v. Canada, 2002 DTC 6969, 2002 SCC 46, [2002] 2 SCR 645 -- summary under Deference to Legislature

By services, 28 November, 2015

Before finding that the taxpayer was not required to establish that he had a reasonable expectation of profit ("REOP") with respect to four rental condominium units held by him, the Court stated (at para. 47) that:

"The REOP test has been applied independently of provisions of the Act to second-guess bona fide commercial decisions of the taxpayer and therefore runs afoul of the principle that courts should avoid judicial rule-making in tax law ... ."

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