INCOME TAX
Income Calculation
Capital Gains and Losses
Appeal from T.C.C. decision confirming validity of assessment disallowing carry‑over of non‑capital loss resulting from business investment loss (BIL)—Appellant public corporation selling its subsidiary to private corporation and this sale resulting in loss—For loss to qualify as BIL, subsidiary had to be controlled by private corporation at time of disposition—Such was case in this instance owing to legal fiction created by Income Tax Act—Appeal allowed—Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 256(9).
La Survivance v. Canada (A‑230‑05, 2006 FCA 129, Noël J.A., judgment dated 31/3/06, 27 pp.)