Minister of National Revenue v. Sedgwick, 63 DTC 1378, [1963] CTC 571, [1964] S.C.R. 177 -- summary under Partnership Interests

After the Toronto Stock Exchange required the termination of what was styled as a loan agreement, but which in fact was a partnership agreement, under which five parties (the "Creditors") including the taxpayer received a share of the profits earned by another individual ("Purcell") in connection with his purchase of a seat on the Toronto Stock Exchange, they entered into an agreement which provided for the payment to the Creditors of the sum of $550,000, of which $300,000 was described as "the share of the Creditors in the net profits of the business for the fiscal year ending March 31, 1956". Martland J. held that the taxpayer's share of the sum of $300,000 received by him was income of the partnership which was allocated to him, rather than a non-taxable capital receipt.