The appellant appealed the Minister's determination of losses for its 2012 taxation year.
The dispute centered on the characterization and timing of a finder's fee paid in shares for brokering a farm-in agreement.
The appellant argued the fee was receivable in 2010 and that the subsequent increase in share value was a capital gain.
The Tax Court of Canada held that the fee was not receivable in 2010 because the right to payment was conditional on expenditure targets being met.
The Court further held that the full value of the shares received in 2012 was business income for services rendered, with only the subsequent increase in value taxable as a capital gain.
The appeal was dismissed.
