Shaughnessy v. The Queen, 2002 DTC 1272 (TCC) -- summary under Business Source/Reasonable Expectation of Profit

By services, 28 November, 2015

After finding that the taxpayer had incurred deductible interest respecting an investment in a rental condominium in Whister, B.C. on the basis of satisfying the eleven principles laid out in Donyina v. The Queen, [2001] 3 CTC 2741 (TCC), Bowman A.C.J. stated (at p. 1277):

"Any realistic analysis of what the CCRA was doing in this case makes it crystal-clear that it was in essence disallowing the interest expense because it did not result in the production of net income. This is precisely the approach rejected by the Supreme Court of Canada in Ludco."

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