In the Schnurr case, the Tax Court of Canada found that, although the taxpayer's contract did not explicitly require him to hire an assistant and pay her salary, the nature of his business activities and his relationship with his employer implied that he would do precisely that. Here, the taxpayer was an investment advisor employed by a stock brokerage firm who 'hired' his wife as an assistant and paid her a salary; her tasks included keeping client records and performing secretarial work. A T2200 was correctly signed by the brokerage firm and submitted to CRA. Although they denied the deduction, the Court allowed it, noting also that the brokerage firm routinely supplied its employees with the signed form T2200.
Schnurr v. The Queen, 2004-10-13

In the Keith and the Solomon cases, the Tax Court of Canada ruled that a taxpayer is not required to maintain a log of their travel mileage for employment, as opposed to personal, usage. The Court must simply find the taxpayer's evidence of his/her employment-related mileage credible.

Solomon v. The Queen, 2004-11-24
Keith v. The Queen, 2004-12-07

 

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In the Hammill case, the Tax Court of Canada denied the business expenses of a taxpayer who fell victim to a fraudulent scheme to profit from precious gems. The taxpayer's intention to profit was judged to be "wishful thinking." This case is under appeal since it appears to resurrect the "reasonable expectation of profit" test which was struck down by the Supreme Court of Canada. 

Hammill v. The Queen, 2004-09-13

The amount of income eligible for the small business deduction is currently limited to $300,000. (Note that it has been proposed to increase this amount to $400,000 effective January 1, 2007.) Corporations under common control are required to share this limit. The Tax Court of Canada ruled that a 50% shareholder who effectively managed a company's administration and finances in fact had de facto control of the company.
Plomberie J.C. Langlois Inc. c. La Reine, 2004-11-02