" The Judge found that ACOA, in entering into the Agreement with the appellant, was carrying out its object and exercising its powers under theAtlantic Canada Opportunities Agency Act (R.S.C., 1985, c. 41 (4th Suppl.)). Hence, based on the evidence and the context, the contribution by ACOA constituted “government assistance” within the meaning of subsection 127(9) of the Act and was not a regular loan advanced on reasonable terms for business purposes.
" In Canada v. CCLC Technologies Inc., reflex, 139 D.L.R. (4th) 765, 96 D.T.C. 6527 [CCLC Technologies], this Court adopted a test which determines whether payments made by a public authority, akin to ACOA and pursuant to an agreement, have the attributes of a commercial venture. In other words, the key question becomes: is the public authority in question acting in a business rather than a governance capacity?"
Applying those principles, the FCA agreed with TCC Justice Lamarre and dismissed the taxpayer's appeal.
See Immunovaccine Technologies Inc. v. Canada, 2014 FCA (Boivin JA)