Pratte,
J
[ORALLY]:—We
are
all
of
opinion
that
the
appeal
must
succeed.
In
our
opinion,
an
expense,
within
the
meaning
of
paragraph
18(l)(a)
of
the
Income
Tax
Act,
is
an
obligation
to
pay
a
sum
of
money.
An
expense
cannot
be
said
to
be
incurred
by
a
taxpayer
who
is
under
no
obligation
to
pay
money
to
anyone.
Contrary
to
what
was
decided
by
the
Trial
Division,
an
obligation
to
do
something
which
may
in
the
future
entail
the
necessity
of
paying
money
is
not
an
expense.
The
appeal
will
therefore
be
allowed,
the
judgment
of
the
Trial
Division
will
be
set
aside
and
the
Minister’s
assessment
of
the
respondent’s
income
tax
for
his
1974
taxation
year
will
be
restored.
As
agreed
between
the
parties,
the
appellant
will
be
entitled
to
Her
costs
in
the
Trial
Division
but
there
will
be
no
order
as
to
the
costs
of
the
appeal.
Email this Content