What are the objective factors used by the Court to determine whether a corporation has an intention to profit?
Canada (Federal), Canada
The following excerpt is from Cohen v. The Queen, 2011 TCC 262 (CanLII):
In paragraph 55, the Court went to on to adopt, the objective factors tested by Dickson J., in Moldowan v. Canada, 1977 CanLII 5 (SCC), [1978] 1 S.C.R. 480, at page 486 to determine the subjective intention to profit which were: (1) the profit and loss experience in past years; (2) the taxpayer’s training; (3) the taxpayer’s intended course of action; and (4) the capability of the venture to show a profit. but also reiterated Dickson J.’s caution that: . . . this list is not intended to be exhaustive, and that the factors will differ with the nature and extent of the undertaking.
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