Précis: In this case the taxpayer urged upon the Court an unusual interpretation of the partnership rollover rule contained in subsection 97(2) of the Income Tax Act (the Act). Justice Boyle held that the taxpayer’s interpretation led to an absurd and unintended result not in keeping with a purposive analysis of the underlying provisions and possibly the result of a latent ambiguity in the legislation. As a result the appeal was dismissed with costs.
Iberville Developments Limited v. R. – TCC: Tax Court rejects odd interpretation of subsection 97(2) rollover provision which would have given rise to a claimed $122M capital loss (rather than a capital gain of $140K)READ MORE »