On October 31, 2003, the Department of Finance announced that a loss can only be deducted if “it is reasonable to expect that the taxpayer will realize a cumulative profit from that business or property”. Each business or property must undergo this test.

The new rule is proposed to apply to taxation that begins after 2004 (this means 2005 taxation year for individuals).

Comments can be sent to the Department of Finance by December 31, 2003.