Chris Canning

The Appellant appealed a reassessment that included approximately $10.1 million in its taxable income under subsection 103(1) of the Income Tax Act.

The income was realized by a partnership on the sale of condominium units.

The partnership had allocated 95% of its income to a loss company that joined the partnership just before its year-end.

The Tax Court of Canada found that the allocation to the loss company was unreasonable and that the Minister's allocation of the vast majority of the profit to the Appellant, the only partner who actively participated in the project, was reasonable.

The appeal was dismissed with costs.

The Appellant, a Crown corporation operating a ferry service, appealed GST/HST reassessments for reporting periods between 2006 and 2012.

The issue was the Appellant's entitlement to input tax credits for property and services used in its commercial activities, which involved both taxable and exempt supplies.

The Tax Court found that the Appellant's space-based allocation methodology was fair and reasonable, allowing the appeals and referring the reassessments back to the Minister for reconsideration based on the Appellant's calculated percentages.