Précis: This is the third in a series of Barejo cases. In the first decision, issued on November 4, 2015, Boyle J. was asked on a Rule 58 application whether certain instruments were “debt” for the general purposes of the Income Tax Act (the Act). He answered yes. The Appellant was dissatisfied and appealed to the Federal Court of Appeal which dismissed the two consolidated appeals from the Bench on November 29, 2016 on the basis that hearing the appeals: “would serve no useful purpose and give rise to an improper use of judicial resources” [para. ]. Both of these decisions were previously blogged on this site. Barejo applied for leave to appeal to the Supreme Court of Canada. That application was dismissed on June 22, 2017 without reasons, and with costs, by a full 9 person panel of the Supreme Court. In this decision Barejo and the Crown asked Boyle J. to rule on whether the same Notes that were at issue in Barejo No. 1 were “debt” for the purposes of paragraph 94.1(1)(a) of the Act. Justice Boyle held that they were “debt” for such purposes. Costs were reserved to the trial judge.
Barejo Holdings v. R. – TCC: Notes are “debt” for the purposes of paragraph 94.1(1)(a) of the Act – Barejo, the Neverending Story - PerhapsREAD MORE »