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Fishing licences repurchased from wholly owned corporation are not replacement properties under s. 14(7).
The appellant transferred fishing licences to his wholly owned corporation and later repurchased the same licences in the same year.
He attempted to use the replacement property rules under subsections 14(6) and 14(7) of the Income Tax Act to defer capital gains.
The Minister reassessed to deny the election and include the capital gain.
The Tax Court of Canada found that the bundle of rights attached to the licences had not changed and constituted the exact same property, which could not qualify as a replacement property under the Act.
The appeal was dismissed.
