Valley Equipment Limited v. The Queen, 2006 TCC 510, is interesting reading in light of Bourgault Industries Ltd. v. The Queen, 2006 TCC 449. In Valley Equipment, the Tax Court judge stated that there was no need to resort to the surrogatum principle to decide the case before her, which also dealt with the treatment of damages received.
The FCA dismissed the taxpayer’s appeal at 2008 FCA 65.