Ocean Mist

2 Sep 2020

Farm Losses Revisited by SCC

Posted by Tax Consultants

On Friday March 23, 2012, The Queen v. John R. Craig was heard by the Supreme Court of Canada (SCC). This was the first opportunity for the SCC to revisit the issue of restricted farm losses since its decision in Moldowan v. The Queen, [1978] 1 SCR 480. In Moldowan, the SCC concluded that farm losses could only be deducted against other sources of income, without restriction, if farming or a combination of farming and some other source of income was a taxpayer chief source of income. This vague direction resulted in over 30 years of inconsistent decisions from the courts below.

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