Précis: This is an appeal of a Tax Court decision blogged earlier on this site. Mr. Zhu argued unsuccessfully before the Tax Court that he should be entitled to deduct losses incurred by him on the disposition of shares at a time he was a non-resident of Canada. The Tax Court held that the losses were not incurred in the course of a business carried on in Canada under the common law test. The Federal Court of Appeal permitted him to raise a new argument on appeal, i.e., whether the losses were incurred in the course of a business carried on in Canada under the expanded test found in paragraph 253(b) of the Income Tax Act (the “ITA”). After consideration of the new argument the Court concluded that the losses were not incurred in Canada under the expanded test and dismissed the appeal with costs.
Zhu v. R. - FCA: Losses did not arise from a business carried on in Canada - appeal dismissedREAD MORE »