On June 30, 2022, TEI applied for leave to intervene (as amicus curiae) in Deans Knight Income Corporation v. Her Majesty the Queen, a case in which the taxpayer was recently granted leave to appeal to the Supreme Court of Canada. The appeal concerns the meaning of “control” for purposes of subsection 111(5) of Canada’s Income Tax Act, which imposes a limitation on a loss corporation’s ability to carry forward and use non-capital losses after “control” of the corporation is acquired by a person or persons. The meaning of the term “control” for this purpose is at issue, with the Federal Court of Appeal having issued a surprising decision last year that departed from well-established precedents and raised fundamental questions about the current interpretation of Canada’s loss use restrictions.
TEI’s application to the Supreme Court of Canada was prepared by the law firm Osler, Hoskin & Harcourt LLP under the coordination of Patricia Likogiannis, Chair of TEI’s Canadian Income Tax Committee, and Watson M. McLeish, TEI Tax Counsel.