Is there a carrying-on of a business?
Canada (Federal), Canada
The following excerpt is from Sherry v. The Queen, 1999 CanLII 324 (TCC):
In summary, whether there is the carrying-on of a business requires analysis in terms of the preponderant objective purpose of the activity. As stated by Bowman J. in Cheesmond v. Canada, [1995] T.C.J. No. 775, at paragraph 13, there must be commercial reality surrounding the transaction in order to meet the test outlined in Moldowan (supra): Nonetheless, [there] must be sufficient of the indicia of commerciality to justify the conclusion that there is a real commercial enterprise being conducted.[5]
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