The results in these cases are mixed. The taxpayer will have more chance of success if the “business” is not something one would do as a hobby or personal activity.
In other cases, the activity simply did not have the “hallmarks” of business, as there was no business-like operation.
In some cases, the business was considered to not yet have begun.
On the other hand, some taxpayers succeed in convincing the Tax Court that they were operating a “real” business in the tax year in question.
Of course, every case depends on its facts, and on how well the case is presented in Court. But sometime, when the CRA denies a loss, that decision can successfully be appealed.