Sylvain Ouimet

The appellant appealed reassessments denying deductions for business losses and expenses incurred from 2010 to 2013 related to marketing a sewage sludge processing technology called Stabiox.

The Minister denied the deductions on the basis that the business was not yet in operation and therefore did not constitute a source of business income.

Applying the test from Stewart v. Canada, the Tax Court found no personal element in the activities but concluded that the appellant's uncorroborated and vague testimony was insufficient to prove that the marketing activities actually took place.

As the appellant failed to establish a source of business income, the appeal was dismissed with costs.

The appellant bank appealed assessments denying deductions for transaction fees paid to CDPQ and FSTQ under share subscription agreements.

The Minister argued the fees were not expenses incurred in the course of an issuance of shares, but rather discounts on the share price, or alternatively, that they were unreasonable.

The Tax Court of Canada allowed the appeal, finding that the fees were paid for financing services and were incurred in the course of an issuance of shares.

The Court also found the 4% transaction fee rate to be reasonable in the circumstances, as the Minister failed to prove otherwise.