In a June 8, 2016 Federal Court of Appeal case (Peach vs. H.M.Q., A- 406-14), at issue was whether the Tax Court was correct in denying the taxpayer’s rental and business losses for the 2009 and 2010 taxation years.
Taxpayer wins, in part
The Federal Court found that the Tax Court erred in globally denying the expenses of the business under Section 67. The Court should have considered each particular expense and the explanation for them. Unreasonable expenses can be eliminated or reduced to make them reasonable.
For further information see VTN Monthly Tax Update Seminar, Issue No. 420