http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/108765/index.do 
Burlington Resources Finance Company v. The Queen (March 20, 2015 – 2015 TCC 71, Campbell J.).
Précis: The appellant in the Burlington appeal and Conoco Funding Company in another appeal were both denied the deduction of guarantee fees paid in the 2002 to 2005 taxation years to their US parent corporations. The aggregate amounts at issue are very large: US $83 million for Burlington and US $109 for Conoco. It does not appear from the decision whether there was some relationship between the two underlying transactions or whether they are just similar assessments. In both appeals the appellants moved against alleged refusals or alleged incomplete answers on the part of CRA. The motions were heard together. Each motion involved dozens of questions. Unfortunately none of the actual questions seem to be set out in the decision although they are characterized or paraphrased in a number of places. The decision is lengthy (171 paragraphs) but at this stage is not likely to be of interest to the average reader. It is difficult to determine but on balance this seems to be a win for the taxpayers although costs were ordered in the cause.
If these appeals ever go to trial they will likely make for interesting decisions.
Decision: Burlington Order:
The Respondent’s nominee, at the Respondent’s own expense, shall re attend a continuation of examinations for discovery, to be held within 60 days of the date of this Order, to answer the questions listed in the following categories:
1. Questions relating to the Crown’s position on the basis of the assessment: 1071, 2338 and 2339 (provided questions 2338 and 2339 are re-stated)
2. Questions relating to the Crown’s position on the capitalization of the Appellant: Questions 192, 2720, 2721, 2723, 2726, 2727
3. Questions relating to Burlington’s credit rating under the “Yield Approach”: Questions 2638 and 2639
4. Questions relating to requests for the lender’s view of the guarantee: Questions 107, 108, 112, 113, 2695 and 2790 are to be answered. Question 2788 should be answered but the Respondent is not required to give the proof of those facts. Questions 2789 and 2791 are to be answered insofar as they are confined to seeking the position the Respondent will adopt at trial.
5. Questions relating to the request for the nature of the guarantee fee payments: None
6. Questions respecting the Crown’s position on sham: Questions 33, 34, 35 and 36
7. Questions relating to the Crown’s position under paragraph 18(1)(b): Question 2616. Question 2617 should be answered, but only to the extent that this question is aimed at having the Respondent divulge the relevant facts in connection with its reliance on paragraph 18(1)(b) and is not seeking evidence.
8. Questions relating to requests for the Crown to describe the primacy of its arguments at trial: Questions 2766 and 2767
9. Questions respecting requests for the Crown’s position on the assessment of penalties: As per the parties’ agreement, to be resolved between the parties or through case management.
10. Questions respecting requests for the Crown’s position in respect of paragraphs 247(2)(b) and (d): Questions 2587, 2588, 2593, 2594 and 2610
11. Questions relating to the use of documents at trial: Question 2105 should be answered. I anticipate that response should also respond to questions 2708, 2711 and 2712. Questions 2298, 2299, 2301, 2303 and 2304 should be answered provided the Appellant rephrases those questions so that they refer to specific production numbers, or in some other manner, identifies those specific documents to which they require a response. Question 2310 should be answered. Questions 2311 and 2313 should be answered if the Appellant provides identification/production numbers for the intercompany agreements it is referencing in 2311 and the item 57 number it is referencing in 2313.
12. Questions relating to requests for audit records in respect of tax avoidance: Questions 897, 2327 and 2328
Any further proper questions arising from those answers shall be provided within 14 days of the completion date of the further examinations.
Costs shall be in the cause.
Conoco order:
The Respondent’s nominee, at the Respondent’s own expense, shall re-attend a continuation of examinations for discovery, to be held within 60 days of the date of this Order, to answer the questions listed in the following categories:
1. Questions relating to the Crown’s position on the basis of the assessment: Question 807
2. Questions relating to the Crown’s position on the capitalization of the Appellant: Questions 1068 and 1343
3. Questions relating to the Crown’s position on the Appellant’s credit rating under the “Yield Approach”: None.
4. Questions relating to the Crown’s position on the nature of the guarantee fee payments: Question 1127
5. Questions relating to the Crown’s position on the legal effectiveness of documents, sham and authenticity: Question 1224 has been answered at this point, but it will be incumbent upon the Respondent to provide its position in due course. Question 1290 should be answered, as long as it is limited to the facts and not the evidence or proof of those facts that the Respondent will rely on to support its position. Questions 1319, 1322, 1323, 1330 and 1331 should be answered.
6. Questions relating to the Crown’s position regarding the application of subsection 247(2) to the “Arrangements”: Questions 1454 and 1455
7. Questions relating to the Crown’s position under paragraph 18(1)(b): Questions 1160, 1161, 1164, 1428 and 1429 should be answered. Question 1435 should be answered, however, the Crown need not, in responding to this question, state how it intends to prove its case in this respect.
8. Questions relating to the Crown’s position respecting its primary argument: Questions 1664, 1666, 1667, 1668 and 1669.
9. Questions relating to the Crown’s position under paragraphs 247(2)(b) and (d): Question 1081 should be answered. Question 1215 should be answered as it pertains to paragraphs 247(2)(b) and (d). Questions 1216, 1653, 1656, 1657, 1658, 1659, 1660, 1661 1662 and 1663 should be answered. Questions 1404, 1406, 1407, 1408, 1409 and 1410 should be answered with further specifics. Question 1423 should be answered in respect to the facts that relate to the assertion that no arm’s length party would provide a guarantee. The Crown, however, need not provide the evidence that will prove that assertion.
10. Questions relating to the request for factual positions: Questions 1628, 1630 and 1671 should be answered. Question 1580 should be answered in respect to any facts that relate to the assertion that the guarantee fees were not incurred. However, this does not include the disclosure of the Crown’s evidence that will prove this assertion.
11. Questions about the use of documents at trial: Questions 942, 944, 945, 946, 948 and 949.
Any further proper questions arising from those answers shall be provided within 14 days of the completion date of the further examinations.
Costs shall be in the cause.