In reviewing an adverse response of the Minister to a request of the taxpayer that the Minister grant under s. 152(4.2) the taxpayer's request for recognition of an allowable business investment loss in a statute-barred year, Dawson J. found that the Minister had erred in finding that it was not reasonable to expect that a corporation ("PGL") owned by the taxpayer would be dissolved and wound up in light of the fact that the corporation was a party to litigation.
"A review of the considerations that led to the decision shows that the Director failed to consider the likelihood that when the lawsuit was resolved PGL would be dissolved and would not commence carrying on business. This would involve consideration of things such as the nature of the claims advanced in the lawsuit, the role of PGL in the lawsuit and what would be the reasonable expectation of PGL's future if the lawsuit succeeded."