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In a June 25, 2004 French Tax Court of Canada case, the taxpayer was permitted a business loss, not a capital loss, on the sale of shares which were speculative in nature.

In a June 23, 2004 Tax Court of Canada case, the Court disallowed a deduction for salaries to his sixteen and twelve year old children against his self-employed business income for reasons including:

(i) The amounts were either not paid to them or, upon being paid, were immediately redeposited in bank accounts of either the business or the parents.

(ii) There was not sufficient documentation and,

(iii) The children did not declare any amounts on their tax returns.

Where an employer enters into a PHSP for an employee, the expenses are generally deductible to the employer and not taxable to the employee. This deductible/non-taxable status may not apply if the PHSP is only available to shareholders.

In a June 24, 2004 Tax Court of Canada case, CRA disallowed the deduction to the company and taxed the shareholder on the basis that this was a benefit given to him in his capacity as a shareholder, not an employee.
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