Date: 19980402
Docket: A-327-96
CORAM: STRAYER, J.A.
DESJARDINS, J.A.
HENRY, D.J.
BETWEEN:
KEITH E. WALLACE
Applicant
- and -
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT
(Judgment Delivered from the Bench at Toronto, Ontario
on Thursday April, 2, 1998)
DESJARDINS, J.A.:
[1] We are all of the view that this application for judicial review must fail.
[2] The applicant became indebted to a company of which he was the sole shareholder on February 2, 1990, when the bank called in a guarantee undertaken by the company for a loan that had been made by the bank to the applicant personally. Pursuant to paragraph 15(2)(b) of the Income Tax Act, the amount of the indebtedness was to be included in computing the income of the applicant for the year 1990, unless the indebtedness was repaid within the year after the end of the taxation year of the company.
[3] But this did not happen. As found by the Tax Court Judge, the applicant was not able to make repayment at all and the debt was written off by the company as uncollectible.
[4] We are of the view that a write-off is not equivalent to a repayment, as claimed by the applicant, and that the Tax Court Judge properly directed himself in the law.
[5] This application for judicial review will therefore be dismissed.
"A. Desjardins"
J.A.
FEDERAL COURT OF CANADA
Date: 19980402
Docket: A-327-96
BETWEEN:
KEITH E. WALLACE
Applicant
- and -
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT
FEDERAL COURT OF CANADA
Names of Counsel and Solicitors of Record
DOCKET: A-327-96
STYLE OF CAUSE: KEITH E. WALLACE
- and -
HER MAJESTY THE QUEEN
DATE OF HEARING: APRIL 2, 1998
PLACE OF HEARING: TORONTO, ONTARIO
REASONS FOR JUDGMENT BY: DESJARDINS, J.A.
DATED: APRIL 2, 1998
Delivered from the Bench at Toronto, Ontario
on Thursday April 2, 1998
APPEARANCES: Mr. John J. Vujicic
For the Applicant
Mr. Marilyn Vardy
For the Respondent
| SOLICITORS OF RECORD: Mr. John J. Vujicic |
Barrister and Solicitor
Suite 1420
135 James Street South
Hamilton, Ontario
L8P 2Z6
For the Applicant
George Thomson
Deputy Attorney General
of Canada
For the Respondent
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