INCOME TAX
Income Calculation
"Tax Shelter"—Appeal from Tax Court of Canada decision (2006 TCC 230) allowing respondent's appeal against reassessments made under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1 for 1998, 1999 taxation years—Respondent acquiring licence in 1998 to use Trafalgar Index Program (TIP licence)—Claiming deductions totalling $50,000 as capital cost allowance in respect of acquisition cost of licence—Whether TIP licence constituted "tax shelter" as defined in Act, s. 237.1(1)—Per Ryer J.A.: Property not constituting tax shelter unless statements, representations of type contemplated by definition of "tax shelter" made in connection with property—All requirements of definition of "tax shelter" met, all TIP licences marketed by, on behalf of TCL Trafalgar, including TIP licence acquired by respondent, tax shelters—Tax shelter identification number should have been obtained before TIP licences sold—Appeal allowed, Evans J.A. concurring, but not limiting application of finding to where representations actually made.
Canada v. Baxter (A‑212‑06, 2007 FCA 172, Evans and Ryer JJ.A., judgment dated 30/4/07, 32 pp.)