When the taxpayer paid under her guarantee of debts owing by her husband's corporation, she became a creditor of the corporation by subrogation. Given that at that time and for some time earlier the corporation was not carrying on business and had no assets that could conceivably service the debt, the subrogated debt was not acquired for an income-producing purpose.
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Tagline
corporation not an income source prior to subrogation
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
337971
Extra import data
{
"field_legacy_header": "<strong><em>Proulx-Drouin v. The Queen</em></strong>, 2005 DTC 487, 2005 TCC 116 <strong>[corporation not an income source prior to subrogation]</strong>",
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"field_sid": "",
"field_topic_category": "seealso"
}
"field_legacy_header": "<strong><em>Proulx-Drouin v. The Queen</em></strong>, 2005 DTC 487, 2005 TCC 116 <strong>[corporation not an income source prior to subrogation]</strong>",
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"field_sid": "",
"field_topic_category": "seealso"
}