| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
business returns |
as income |
|
Summary:
Allocation of the net profits of the business in accordance with sections 57(6)(c) and 58(6) of the Regulations. BOR reversed this decision, holding that the retained earnings had never been distributed to shareholders. Umpire ruled that s. 57(6)(c) of the Regulations could not be restricted by considerations of non-distribution. The Commission was thus justified in treating the retained earnings as income and in allocating them, since these benefits represented income that the claimant could withdraw from the operating cash flow of the business.
