INCOME TAX
Income Calculation
Deductions
Appeal from T.C.C. decision (2005 TCC 374) allowing appeal from M.N.R. decision disallowing 50 percent of deductions pursuant to Income Tax Act, s. 67.1(1) on basis expenditures in respect of consumption, enjoyment— Respondent’s expenditures, gift certificates given to clients, for a business purpose—Act, s. 67.1(1) not distinguishing between business, personal expenditures, and respondent’s expenditures not falling under any of express exceptions to s. 67.1(1)—Although unfair, statute dictating result in case at bar—Appeal allowed—Income Tax Act, R.S.C., 1985 (5th Supp.), c.1, s. 67.1(1) (as enacted by S.C. 1988, c. 55, s. 46; 1995, c. 3, s. 17).
Canada v. Stapley (A‑219‑05, 2006 FCA 36, Sexton J.A., order dated 27/1/06, 18 pp.)