2 total
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.
Appeal dismissed; Minister not statute-barred from correcting net capital loss balance from prior years.
The appellant appealed the assessment of his 2020 taxation year, arguing that the Minister was statute-barred from reducing his net capital loss balance to account for a 1994 bankruptcy discharge because previous Notices of Assessment had included the pre-bankruptcy losses.
The Tax Court of Canada dismissed the appeal, holding that a statement of a loss balance in a Notice of Assessment is not a binding determination under subsection 152(1.3) of the Income Tax Act, and the Minister is permitted to correct errors from statute-barred years when assessing a current year.
