- Parties: The appellant was Procon Mining and Tunnelling Ltd. The respondent was His Majesty the King.

- Subject Matter: The appellant’s business involved providing contract mining and management services for all aspects of mine development and production. In 2012, the appellant subscribed for shares in two junior mining companies, each under a memorandum of understanding entered into by the appellant or an affiliate. Each mining company had a mining project that it hoped to develop, but neither project proceeded. In 2013, the appellant sold the shares of both companies to a related corporation at a loss. The appellant deducted the resulting losses in computing its income for the 2013 taxation year. The Minister of National Revenue reassessed the appellant on the basis that the losses were capital losses not deductible in computing income. The Tax Court of Canada dismissed the appeal from the reassessment. The appellant challenged this decision.

- Ruling: The appeal court ruled in the respondent’s favour and dismissed the appeal with costs to the respondent. The appeal court disagreed with the appellant’s argument that the shares were inventory because they did not themselves produce income and because the Tax Court found that they were held and used in the appellant’s business.

- Date: The hearing was set on Dec. 11, 2023. The court released its decision on Jan. 2, 2024.

- Venue: This was a federal case before the Federal Court of Appeal.

- Amount: No financial award was specified.