When purchasing shares in a non-qualified investment, automatically triggering subsection 146(1) of the Income Tax Act, can a taxpayer avoid paying tax on those shares?
Canada (Federal), Canada
The following excerpt is from Canada v. Nunn, 2006 FCA 403 (CanLII):
By purchasing the shares in a non-qualified investment, subsection 146(1) was automatically triggered. Undoubtedly, this result is harsh but it would be unfair to exempt a taxpayer from his or her tax obligation on the basis of mistake or fraud: Vankerk v. Canada, 2006 FCA No. 371 at paragraph 3. Put simply, other Canadian taxpayers should not have to bear the financial burden which arises from unfortunate circumstances such as those that exist here. Breach of Natural Justice
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