The taxpayer advanced funds to a start-up company, sold the shares to a friend and, after the sale, made no attempt to collect the advances from the company as she knew the friend was in financial difficulty and, as a friend, she did not want to add to his problems.
In accepting that the taxpayer has sustained an allowable business investment loss, Miller J. stated (at pp. 376-37):
"I conclude that where a creditor could access financial information to assist in assessing the collectibility of a debt but chooses not to, the Court should take into account not only all the factors the creditor in fact considered, but the Court should also consider such financial information in assessing the reasonableness of the creditor's decision."