INCOME TAX
Income Calculation
Deductions
Appeal from Tax Court of Canada decision (2006 TCC 651) respondent (Nisker) entitled to deduct from income payment made to settle action against him notwithstanding fact liability took place at corporate level—T.C.C. erred in concluding expense incurred to protect respondent’s business—Amount paid by respondent as damages resulting from personal liability not business expense under Income Tax Act, R.S.C., 1985 (5th Supp.) , c. 1—T.C.C. also erred in piercing corporate veil—Piercing of corporate veil directed towards shareholders, not corporate officers such as respondent—Appeal allowed.
Nisker v. Canada (A-2-07, 2008 FCA 37, Létourneau J.A., judgment dated 31/1/08, 21 pp.)