Following an amendment to the Forest Act (British Columbia) which gave holders of existing timber rights and privileges the entitlement to replace their existing rights with new timber licences governed by the new provisions of that Act, the taxpayer exercised this right of replacement to obtain replacement licences that covered identical areas subject to the terms of the same tree farming licence. In rejecting a submission of the taxpayer that it had given up previously-granted licences to obtain the newer licences, thereby establishing a cost for the replacement licences equal to the value of what it had exchanged, Desjardins JA stated (at p. 6442) that the taxpayer:
"has not given up anything to get the replacement licences. Sections 20 and 33 of the Forest Act make it clear that the original licences were made to expire by statute and require that the replacement licences be issued automatically."