INCOME TAX |
Income Calculation |
Deductions |
Canada v. Jabin Investments Ltd.
A-717-01
2002 FCA 520, Rothstein J.A.
19/12/02
4 pp.
Appeal from Tax Court Judge's decision under Income Tax Act, s. 245--Whether would clear and unambiguous policy that where creditor would not attempt to collect debt, although debt remains legally enforceable, debt to be treated as if no longer enforceable and applied to reduce non-capital losses from prior years otherwise deductible in computing taxpayer's taxable income for subsequent years--Minister argued policy of Income Tax Act abused--As policy invoked by Minister overriding words used by Parliament, to apply policy, policy must be clear and unambiguous--Court not satisfied from references given to Court in regard of clear and unambiguous policy providing debts not legally extinguished to be treated as extinguished as debt could be collected in future--Appeal dismissed--Income Tax Act, R.S.C., 1985, (5th Supp.), c. 1, s. 245.