Miller T.C.J. noted that with respect to the situation where the taxpayer, which owed approximately $60 million in accrued interest, paid $60 million to the creditor at the same time that the creditor paid $60 million to the taxpayer as an addition to the advances owing by the taxpayer, that he had difficulty identifying any moment in time at which the taxpayer did not owe $60 million to the creditor. Nonetheless, the transaction was found to constitute a payment of $60 million by the taxpayer to the creditor because, unlike the Cox case (71 DTC 5150), in this case both the taxpayer and the creditor had arranged for sufficient funds such that the cheques would be honoured, and in fact were honoured:
"It was not a matter of each side relying on the other side's funds for their cheques to be honoured."