INCOME TAX
Income Calculation
Income or Capital Gain
Appeal from Tax Court of Canada's dismissal of income tax appeals regarding assessments (2006) TCC 240), loss determinations—Appellant purchasing aircraft, railcars then leasing purchases out for long terms to operating company—Citibank Canada (CC), owner of appellant, financing appellant's equipment leasing transactions—Appellant claiming capital cost allowance on leased equipment in income tax returns—Tax Court correctly finding appellant's foreign exchange gains, losses arising from CC loans were capital gains, losses—However, appellant entitled to deduction in 1993 for part of 1991 non‑capital loss without increasing 1989 deduction—Income Tax Act, s. 111(1)(a) giving taxpayer right to choose allocation of non‑capital loss of particular year between period specified therein—Save for s. 111(3)(a)(i), 111(3)(b)(i), Minister not having right to impose particular allocation on taxpayer—Appeal allowed in part.
CCLI (1994) Inc. v. Canada (A‑237‑06, 2007 FCA 185, Sharlow J.A., judgment dated 14/5/07, 17 pp.)