Chad v. Canada
Paletta Estate correctly interprets Stewart and Walls; where objective evidence shows an activity that appears commercial was undertaken with the purpose of realizing a loss rather than pursuing profit, that activity is not a source of income; the Tax Court properly applied this principle to find the appellant intended to incur a loss and thus had no source of income, so the reassessment was correctly confirmed.
Source excerpt
- Source of income
- Pursuit of profit
- Sham transactions
- Tax reassessment
- Standards of review