Précis: This is a decision on appeal from a case that had unusual beginnings in the Tax Court. That decision involved one of the oddest procedures seen in the Tax Court in many years:
[1] The question referred to the Court by the parties pursuant to Rule 58 is whether two contracts, entitled Notes and issued for US $998 million by affiliates of two Canadian banks and guaranteed by those banks, which are held by St. Lawrence Trading Inc. (“SLT”), an open-ended investment fund incorporated under the laws of the British Virgin Islands, constitute debt for purposes of the Income Tax Act (the “Act”).
Barejo Holdings ULC v. R. - FCA: Appeal on meaning of “debt” an “improper use of judicial resources”READ MORE »