The Appellant, a mining contractor, acquired shares in junior mining companies to secure mining contracts.
The joint initiatives failed, and the Appellant sold the shares at a loss, which it deducted on income account.
The Minister reassessed the losses as capital losses and superficial losses.
The Tax Court of Canada dismissed the appeal, finding that the shares were acquired to be held and used to generate business revenues, not for trading, and were therefore capital property.
The losses were correctly characterized as capital losses.
