Connaught Laboratories Ltd. v. Canada
T-2036-87
Reed J.
16/11/94
6 pp.
Whether plaintiff required to pay interest on taxes payable during given year, as result of capital gain in that year, when tax payable becomes zero as result of application of capital loss arising in subsequent year-Plaintiff filing tax return for 1981 taxation year showing nil tax payable -- Minister reassessing plaintiff's return by adding to computation of taxable income for 1981 net capital gain in amount of $275,423 -- Plaintiff incurring net capital loss of $273,452 in 1982, entitled to carry amount back to be applied against 1981 net capital gain -- Nil taxes payable with respect to 1981 year-Undeclared scientific research expenditures of $12,000,000 available to plaintiff with respect to 1981 taxation year -- Income Tax Act, s. 161(7) providing for payment of interest with respect to carry back of capital losses -- "Tax payable" referring to tax payable on basis of particular way taxpayer chooses to compute taxable income, when option available -- Not referring to tax payable had another option been chosen -- Wording of s. 161(7) requiring interest payment assessed by Minister -- No ambiguity in wording -- Claim dismissed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 161(7).