After finding that the taxpayer was entitled to deduct 75% of the difference between the Canadian- dollar equivalent of a U.S. dollar debenture at the time of its issuance by the taxpayer, and the Canadian-dollar equivalent of the amount repaid at maturity measured at the exchange date prevailing at the time of repayment under s. 20(1)(f)(ii), Sharlow J.A. found that the taxpayer was prohibited by s. 248(28) from deducting the remaining 25% under s. 39(2), by virtue of s. 248(28). She further stated (at para. 69):
[A]llowing a further deduction under subsection 39(2) in respect of the non-deductible 25% of the total redemption cost would be tantamount to allowing more tax relief for a capital loss than Parliament intended.