Jolly Farmer Products Inc. v. The Queen, 2008 DTC 4396, 2008 TCC 409 -- summary under Income-Producing Purpose

By services, 28 November, 2015

In finding that the taxpayer was entitled to deduct capital cost allowance in respect of houses situated close to the taxpayer's greenhouse operation and occupied by employee-shareholders of the corporation (all of whom had similar religious beliefs), Bowman, C.J. stated (at para. 23-24):

Once I conclude that it is a business decision to house the employees in company-owned houses and to provide other facilities in the Commons it is not up to me or the Minister to question that decision, even if I were to disagree with it, which I do not... . This case is an excellent example of the CRA seeking to substitute its business judgment for that of the taxpayer.

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