Précis: Mr. Foote spend his entire career in the investment business rising to the co-head of institutional trading for a large Canadian full-service brokerage firm. In 2009 he treated all of his personal trading (with the exception of short positions) as being on capital account (roughly a gain of $550,000). CRA assessed him as a trader and he appealed to the Tax Court. The evidence was simply overwhelming that Mr. Foote was a trader and not an investor. His multiple transactions and short trading times essentially shone a neon light on his activities. While his counsel obviously put up a very good fight, to an objective observer the result was inevitable. The appeal was dismissed with costs.
Foote v. R. - TCC: Professional investment advisor’s personal trades were on income accountREAD MORE »