You are here

SCC Decision: May 22, 2008

Taxonomy upgrade extras: 
Research articles : 

R. v. McLarty, 2008 SCC 26
Click here to link to the full judgment.
(Taxation / Income tax)
In 1992, M bought an interest in proprietary seismic data, with payment satisfied by a down payment and a promissory note, repayable according to a somewhat complex scheme.  M treated his purchase as a largely deductible expense, but was reassessed.  The Court found that M was entitled to his deduction, since he incurred an absolute liability.  M and the seller dealt with each other at arm's length.
Majority/Dissent: 7/2