Dockets: 2013-355(IT)G  
2
013-3488(IT)G  
BETWEEN:  
LYNN CASSAN,  
and  
Appellant,  
HER MAJESTY THE QUEEN,  
Respondent.  
Appeal heard on common evidence with the appeals of  
Kenneth Gordon (2014-384(IT)G), Stephen Chu (2014-802(IT)G),  
Katherine Lee Sang (2014-803(IT)G), Howard Platnick (2014-804(IT)G),  
and Dana Tilatti (2014-806(IT)G) on February 8 to 12, 2016,  
February 15 to 19, 2016, February 22 to 25, 2016 and  
June 29 and 30, 2016, at Toronto, Ontario  
Before: The Honourable Justice John R. Owen  
Appearances:  
Counsel for the Appellants:  
Al Meghji, Mary Paterson,  
Pooja Mihailovich and Adam Hirsh  
Counsel for the Respondent:  
Daniel Bourgeois, Andrew Miller,  
and Josh Kumar  
JUDGMENT  
In accordance with the attached Reasons for Judgment, the appeals from the  
reassessments made under the Income Tax Act (“ITA”) for the 2009, 2010 and  
2
011 taxation years are allowed and the reassessments are referred back to the  
Minister of National Revenue for reconsideration and reassessment on the basis  
that:  
1
.
The eligible amount of the gift made by the Appellant to TGTFC (as  
defined in the Reasons for Judgment) in 2009 is nil.  
Page: 2  
2
.
The interest paid or payable by the Appellant in the Appellant’s 2009,  
2
010 and 2011 taxation years on the Unit Loan (as defined in the  
Reasons for Judgment) is deductible under paragraph 20(1)(c) of the  
Income Tax Act (the “ITA”) in computing the income of the Appellant  
for those taxation years.  
3
4
.
.
The Fees (as defined in the Reasons for Judgment) incurred by the  
Appellant in the Appellant’s 2009, 2010 and 2011 taxation years are  
deductible in computing the income of the Appellant for those taxation  
years in accordance with the applicable provisions of the ITA.  
The 2009 LP (as defined in the Reasons for Judgment) is not deemed by  
subsection 12(9) of the ITA to accrue as interest any amount in respect  
of the Linked Notes (as defined in the Reasons for Judgment) for its  
2
009, 2010 and 2011 taxation years.  
th  
Signed at Ottawa, Canada, this 8 day of September 2017.  
“J.R. Owen”  
Owen J.  
Docket: 2014-384(IT)G  
Appellant,  
BETWEEN:  
KENNETH GORDON,  
and  
HER MAJESTY THE QUEEN,  
Respondent.  
Appeal heard on common evidence with the appeals of  
Lynn Cassan (2013-355(IT)G and 2013-3488(IT)G),  
Stephen Chu (2014-802(IT)G), Katherine Lee Sang (2014-803(IT)G),  
Howard Platnick (2014-804(IT)G) and Dana Tilatti (2014-806(IT)G) on  
February 8 to 12, 2016, February 15 to 19, 2016,  
February 22 to 25, 2016 and June 29 and 30, 2016, at Toronto, Ontario  
Before: The Honourable Justice John R. Owen  
Appearances:  
Counsel for the Appellants:  
Al Meghji, Mary Paterson,  
Pooja Mihailovich and Adam Hirsh  
Counsel for the Respondent:  
Daniel Bourgeois, Andrew Miller,  
and Josh Kumar  
JUDGMENT  
In accordance with the attached Reasons for Judgment, the appeal from the  
reassessments made under the Income Tax Act for the 2009 and 2010 taxation  
years is allowed and the reassessments are referred back to the Minister of National  
Revenue for reconsideration and reassessment on the basis that:  
1
.
The eligible amount of the gift made by the Appellant to TGTFC (as  
defined in the Reasons for Judgment) in 2009 is nil.  
Page: 2  
2
.
The interest paid or payable by the Appellant in the Appellant’s 2009  
and 2010 taxation years on the Unit Loan (as defined in the Reasons for  
Judgment) is deductible under paragraph 20(1)(c) of the Income Tax Act  
(the “ITA”) in computing the income of the Appellant for those taxation  
years.  
3
4
.
.
The Fees (as defined in the Reasons for Judgment) incurred by the  
Appellant in the Appellant’s 2009 and 2010 taxation years are deductible  
in computing the income of the Appellant for those taxation years in  
accordance with the applicable provisions of the ITA.  
The 2009 LP (as defined in the Reasons for Judgment) is not deemed by  
subsection 12(9) of the ITA to accrue as interest any amount in respect  
of the Linked Notes (as defined in the Reasons for Judgment) for its  
2
009 and 2010 taxation years.  
th  
Signed at Ottawa, Canada, this 8 day of September 2017.  
“J.R. Owen”  
Owen J.  
Docket: 2014-802(IT)G  
Appellant,  
BETWEEN:  
STEPHEN CHU,  
and  
HER MAJESTY THE QUEEN,  
Respondent.  
Appeal heard on common evidence with the appeals of Lynn Cassan  
2013-355(IT)G and 2013-3488(IT)G), Kenneth Gordon (2014-384(IT)G),  
(
Katherine Lee Sang (2014-803(IT)G), Howard Platnick (2014-804(IT)G) and Dana  
Tilatti (2014-806(IT)G) on February 8 to 12, 2016,  
February 15 to 19, 2016, February 22 to 25, 2016 and June 29 and 30, 2016,  
at Toronto, Ontario  
Before: The Honourable Justice John R. Owen  
Appearances:  
Counsel for the Appellants:  
Al Meghji, Mary Paterson,  
Pooja Mihailovich and Adam Hirsh  
Counsel for the Respondent:  
Daniel Bourgeois, Andrew Miller,  
and Josh Kumar  
JUDGMENT  
In accordance with the attached Reasons for Judgment, the appeal from the  
reassessments made under the Income Tax Act for the 2009 and 2010 taxation  
years is allowed and the reassessments are referred back to the Minister of National  
Revenue for reconsideration and reassessment on the basis that:  
1
.
The eligible amount of the gift made by the Appellant to TGTFC (as  
defined in the Reasons for Judgment) in 2009 is nil.  
Page: 2  
2
.
The interest paid or payable by the Appellant in the Appellant’s 2009  
and 2010 taxation years on the Unit Loan (as defined in the Reasons for  
Judgment) is deductible under paragraph 20(1)(c) of the Income Tax Act  
(the “ITA”) in computing the income of the Appellant for those taxation  
years.  
3
4
.
.
The Fees (as defined in the Reasons for Judgment) incurred by the  
Appellant in the Appellant’s 2009 and 2010 taxation years are deductible  
in computing the income of the Appellant for those taxation years in  
accordance with the applicable provisions of the ITA.  
The 2009 LP (as defined in the Reasons for Judgment) is not deemed by  
subsection 12(9) of the ITA to accrue as interest any amount in respect  
of the Linked Notes (as defined in the Reasons for Judgment) for its  
2
009 and 2010 taxation years.  
th  
Signed at Ottawa, Canada, this 8 day of September 2017.  
“J.R. Owen”  
Owen J.  
Docket: 2014-803(IT)G  
Appellant,  
BETWEEN:  
KATHERINE LEE SANG,  
and  
HER MAJESTY THE QUEEN,  
Respondent.  
Appeal heard on common evidence with the appeals of Lynn Cassan  
2013-355(IT)G and 2013-3488(IT)G), Kenneth Gordon (2014-384(IT)G),  
Stephen Chu (2014-802(IT)G), Howard Platnick (2014-804(IT)G) and  
Dana Tilatti (2014-806(IT)G) on February 8 to 12, 2016,  
(
February 15 to 19, 2016, February 22 to 25, 2016 and June 29 and 30, 2016,  
at Toronto, Ontario  
Before: The Honourable Justice John R. Owen  
Appearances:  
Counsel for the Appellants:  
Al Meghji, Mary Paterson,  
Pooja Mihailovich and Adam Hirsh  
Counsel for the Respondent:  
Daniel Bourgeois, Andrew Miller,  
and Josh Kumar  
JUDGMENT  
In accordance with the attached Reasons for Judgment, the appeal from the  
reassessments made under the Income Tax Act for the 2009 and 2010 taxation  
years is allowed and the reassessments are referred back to the Minister of National  
Revenue for reconsideration and reassessment on the basis that:  
1
.
The eligible amount of the gift made by the Appellant to TGTFC (as  
defined in the Reasons for Judgment) in 2009 is nil.  
Page: 2  
2
.
The interest paid or payable by the Appellant in the Appellant’s 2009  
and 2010 taxation years on the Unit Loan (as defined in the Reasons for  
Judgment) is deductible under paragraph 20(1)(c) of the Income Tax Act  
(the “ITA”) in computing the income of the Appellant for those taxation  
years.  
3
4
.
.
The Fees (as defined in the Reasons for Judgment) incurred by the  
Appellant in the Appellant’s 2009 and 2010 taxation years are deductible  
in computing the income of the Appellant for those taxation years in  
accordance with the applicable provisions of the ITA.  
The 2009 LP (as defined in the Reasons for Judgment) is not deemed by  
subsection 12(9) of the ITA to accrue as interest any amount in respect  
of the Linked Notes (as defined in the Reasons for Judgment) for its  
2
009 and 2010 taxation years.  
th  
Signed at Ottawa, Canada, this 8 day of September 2017.  
“J.R. Owen”  
Owen J.  
Docket: 2014-804(IT)G  
Appellant,  
BETWEEN:  
HOWARD PLATNICK,  
and  
HER MAJESTY THE QUEEN,  
Respondent.  
Appeal heard on common evidence with the appeals of Lynn Cassan  
2013-355(IT)G and 2013-3488(IT)G), Kenneth Gordon (2014-384(IT)G),  
(
Stephen Chu (2014-802(IT)G), Katherine Lee Sang (2014-803(IT)G) and  
Dana Tilatti (2014-806(IT)G) on February 8 to 12, 2016,  
February 15 to 19, 2016, February 22 to 25, 2016 and June 29 and 30, 2016,  
at Toronto, Ontario  
Before: The Honourable Justice John R. Owen  
Appearances:  
Counsel for the Appellants:  
Al Meghji, Mary Paterson,  
Pooja Mihailovich and Adam Hirsh  
Counsel for the Respondent:  
Daniel Bourgeois, Andrew Miller,  
and Josh Kumar  
JUDGMENT  
In accordance with the attached Reasons for Judgment, the appeal from the  
reassessments made under the Income Tax Act for the 2009 and 2010 taxation  
years is allowed and the reassessments are referred back to the Minister of National  
Revenue for reconsideration and reassessment on the basis that:  
1
.
The eligible amount of the gift made by the Appellant to TGTFC (as  
defined in the Reasons for Judgment) in 2009 is nil.  
Page: 2  
2
.
The interest paid or payable by the Appellant in the Appellant’s 2009  
and 2010 taxation years on the Unit Loan (as defined in the Reasons for  
Judgment) is deductible under paragraph 20(1)(c) of the Income Tax Act  
(the “ITA”) in computing the income of the Appellant for those taxation  
years.  
3
4
.
.
The Fees (as defined in the Reasons for Judgment) incurred by the  
Appellant in the Appellant’s 2009 and 2010 taxation years are deductible  
in computing the income of the Appellant for those taxation years in  
accordance with the applicable provisions of the ITA.  
The 2009 LP (as defined in the Reasons for Judgment) is not deemed by  
subsection 12(9) of the ITA to accrue as interest any amount in respect  
of the Linked Notes (as defined in the Reasons for Judgment) for its  
2
009 and 2010 taxation years.  
th  
Signed at Ottawa, Canada, this 8 day of September 2017.  
“J.R. Owen”  
Owen J.  
Docket: 2014-806(IT)G  
Appellant,  
BETWEEN:  
DANA TILATTI,  
and  
HER MAJESTY THE QUEEN,  
Respondent.  
Appeal heard on common evidence with the appeals of Lynn Cassan  
2013-355(IT)G and 2013-3488(IT)G), Kenneth Gordon (2014-384(IT)G),  
(
Stephen Chu (2014-802(IT)G), Katherine Lee Sang (2014-803(IT)G) and  
Howard Platnick (2014-804(IT)G) on February 8 to 12, 2016,  
February 15 to 19, 2016, February 22 to 25, 2016 and June 29 and 30, 2016,  
at Toronto, Ontario  
Before: The Honourable Justice John R. Owen  
Appearances:  
Counsel for the Appellants:  
Al Meghji, Mary Paterson,  
Pooja Mihailovich and Adam Hirsh  
Counsel for the Respondent:  
Daniel Bourgeois, Andrew Miller,  
and Josh Kumar  
JUDGMENT  
In accordance with the attached Reasons for Judgment, the appeal from the  
reassessments made under the Income Tax Act for the 2009 and 2010 taxation  
years is allowed and the reassessments are referred back to the Minister of National  
Revenue for reconsideration and reassessment on the basis that:  
1
.
The eligible amount of the gift made by the Appellant to TGTFC (as  
defined in the Reasons for Judgment) in 2009 is nil.  
Page: 2  
2
.
The interest paid or payable by the Appellant in the Appellant’s 2009  
and 2010 taxation years on the Unit Loan (as defined in the Reasons for  
Judgment) is deductible under paragraph 20(1)(c) of the Income Tax Act  
(the “ITA”) in computing the income of the Appellant for those taxation  
years.  
3
4
.
.
The Fees (as defined in the Reasons for Judgment) incurred by the  
Appellant in the Appellant’s 2009 and 2010 taxation years are deductible  
in computing the income of the Appellant for those taxation years in  
accordance with the applicable provisions of the ITA.  
The 2009 LP (as defined in the Reasons for Judgment) is not deemed by  
subsection 12(9) of the ITA to accrue as interest any amount in respect  
of the Linked Notes (as defined in the Reasons for Judgment) for its  
2
009 and 2010 taxation years.  
th  
Signed at Ottawa, Canada, this 8 day of September 2017.  
“J.R. Owen”  
Owen J.  
Citation: 2017 TCC 174  
Date: 20170908  
Dockets: 2013-355(IT)G  
2
013-3488(IT)G  
BETWEEN:  
LYNN CASSAN,  
and  
Appellant,  
HER MAJESTY THE QUEEN,  
Respondent;  
Docket: 2014-384(IT)G,  
AND BETWEEN:  
KENNETH GORDON,  
and  
Appellant,  
HER MAJESTY THE QUEEN,  
Respondent;  
Docket: 2014-802(IT)G,  
AND BETWEEN:  
STEPHEN CHU,  
and  
Appellant,  
HER MAJESTY THE QUEEN,  
Respondent;  
Page: 2  
Docket: 2014-803(IT)G,  
Appellant,  
AND BETWEEN:  
AND BETWEEN:  
AND BETWEEN:  
KATHERINE LEE SANG,  
and  
HER MAJESTY THE QUEEN,  
Respondent;  
Docket: 2014-804(IT)G  
HOWARD PLATNICK,  
and  
Appellant,  
HER MAJESTY THE QUEEN,  
Respondent;  
Docket: 2014-806(IT)G  
DANA TILATTI,  
and  
Appellant,  
HER MAJESTY THE QUEEN,  
Respondent.  
REASONS FOR JUDGMENT  
Owen J.  
I. Introduction  
[1] These are appeals by Lynn Cassan, Kenneth Gordon, Dana Tilatti, Howard  
Platnick, Steven Chu and Katherine Lee Sang (collectively, the “Appellants”) of  
reassessments fixing the income tax consequences of their participation in a  
structure called the EquiGenesis 2009-II Preferred Investment Limited Partnership  
and Donation Program (the “Program”) that was created and marketed by  
EquiGenesis Corporation (“EquiGenesis”) in 2009. The appeals were heard on  
common evidence.  
Page: 3  
[2] The basic components of the Program vis-à-vis the Appellants are an  
investment, substantially funded by a loan, in limited partnership units of a limited  
partnership and a transfer of money to a charitable foundation, also substantially  
funded by a loan. EquiGenesis promoted the Program on the basis that a  
participant in the Program would be entitled to a non-refundable charitable  
donation tax credit for the 2009 taxation year and to deductions from income for  
interest and fees payable over 19 years.  
[
2
3] The Minister of National Revenue (the “Minister”) reassessed the 2009 and  
010 taxation years of the Appellants to deny the non-refundable charitable  
1
donation tax credit claimed in respect of the Program for the 2009 taxation year  
and to deny the deductions from income claimed in respect of the Program for the  
2
009 and 2010 taxation years. The Minister also included in income each  
Appellant’s proportionate share of income the Minister says was deemed by  
2
subsection 12(9) of the Income Tax Act (Canada) (the “ITA”) and paragraph  
7
000(2)(d) of the Income Tax Regulations (the “ITR”) to be realized by the limited  
partnership.  
II. The Evidence  
[4] The parties filed a statement of agreed facts (partial), a copy of which is  
attached as Appendix A to these reasons. The structure of the Program is shown  
graphically in Appendix B to these reasons.  
[5] Six fact witnesses and three expert witnesses testified for the Appellants:  
1
.
Kenneth Gordon, the sole shareholder of EquiGenesis, a participant in  
the Program and one of the Appellants;  
2
3
4
5
.
.
.
.
Dana Tilatti, a participant in the Program and one of the Appellants;  
Howard Platnick, a participant in the Program and one of the Appellants;  
Steven Chu, a participant in the Program and one of the Appellants;  
Katherine Lee Sang, a participant in the Program and one of the  
Appellants;  
1
In addition, Lynn Cassan was reassessed for her 2011 taxation year after filing a notice of objection to the initial  
assessment for the year, claiming deductions for the interest and loan-related fees for that year and a limited  
partnership loss of $3,309. The reassessment denied the claimed deductions and added $145,400 of income. A  
subsequent reassessment removed the $145,400 of income for the reason described in paragraph 163 below.  
2
Unless otherwise noted all statutory references are to the provisions of the ITA.  
Page: 4  
6
7