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The article discusses the court case Robert Glegg Investment Inc. (RGI) versus Canada on taxation of 54-million-dollar non-competition agreement between RGI, Glegg Industries Inc. (GII) and General Electric Canada Inc. (GE) for the sale of GII shares to GE. The case arose after the Canada Revenue Agency (CRA) rejected the allocation of the entire amount to the agreement in 1999. The Tax Court of Canada ruled that section 68 of the Income Tax Act does not apply to the transaction. The Federal Court of Appeal dismissed the case.

The article discusses the court case Lipson versus Canada on tax deductions made in interest of additional loan used to repay a mortgage for a new home. The appellant claimed that the additional loan used to acquire shares in a family company is deductible to his wife under paragraph 20(1)(c) of the Income Tax Act. The Tax Court Canada described the transactions as a capital flip that misused the provisions of the law. The Supreme Court ruled that the appellant misuse the attribution rules and not the paragraph 20(1)(c).

The article focuses on the decision of Great Britain's Special Commissioners and the Chancery Division on the tax case Woods versus Holden. Woods expected that the gain on the transfer of its shares in Greetings to another British company would be exempt under the British tax law. It cites the reasons of the Chancery Division for allowing the appeal of Woods. It details the flaws in the Special Commissioners' reasoning in the case that were identified by the Court of Appeal.