MFC Bancorp Ltd. v. R., 99 DTC 905, [1999] 4 CTC 2468 (TCC) -- summary under Subsection 56(4)

By services, 28 November, 2015

Before going on to find that s. 56(4) did not apply to royalty income derived from the taxpayer's interest as lessor in mining concessions and railway rights-of-way because that interest had been transferred by the taxpayer to a corporation in which its subsidiary had a 37% beneficial interest, McArthur TCJ. stated (at p. 912):

"Surely, the exclusionary words 'unless the income is from property' are not to be read so narrowly as to prohibit a taxpayer from benefiting from the exclusion when the income is from property which is an integral part of the taxpayer's business."

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