1 total
Appeals dismissed; taxpayers' loans were made to a holding company, precluding allowable business investment loss claims.
The appellants claimed allowable business investment losses (ABILs) and related non-capital loss carry forwards in respect of funds advanced to a holding company, which then transferred the funds to an operating company.
The Minister denied the claims on the basis that the holding company was not a small business corporation.
The appellants argued the holding company was merely a conduit and the loans were actually made to the operating companies.
The Tax Court of Canada dismissed the appeals, finding that the documentary evidence and contemporaneous tax filings supported the conclusion that the loans were made to the holding company, not the operating companies.
