Good news and bad news (egg producer fined for overproduction).
Author | Mitchell, Teresa |
A British Columbia egg producer deliberately produced more eggs that it was allowed under government quotas. It was afraid of losing business to competitors and chose the lesser of two evils to compete. It was fined $270,000 -- the bad news. The company then deducted the fines and penalties from its income at tax time. Revenue Canada objected to the deduction and the case ended up before the Supreme Court of Canada, where the egg producer got some good news. Justice Iaccobucci wrote the majority opinion and he said "Levies, fines and penalties which are incurred for the...
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