Lamer,
C.J.
(orally):—
It
will
not
be
necessary
to
hear
from
you
Mr.
Wortzman.
The
appeal
is
dismissed
with
costs;
judgment
will
be
pronounced
by
Mr.
Justice
lacobucci.
lacobucci,
J.:—
We
are
all
of
the
view
that
this
appeal
should
be
dismissed.
The
respondent
taxpayer
traded
extensively
in
commodity
futures
during
the
taxation
years
1978-1981
and
claimed
as
income
tax
deductions
business
losses
arising
out
of
trading
in
gold
futures
on
his
own
account.
On
the
facts,
the
respondent
reported
his
losses
when
they
were
actually
incurred,
and
his
gains
when
they
were
actually
realized.
In
our
view,
the
appellant
has
not
demonstrated
that
there
is
any
error
in
adopting
this
approach.
While
the
"marked
to
market”
accounting
method
proposed
by
the
appellant
may
better
describe
the
taxpayer's
income
position
for
some
purposes,
we
are
not
satisfied
that
it
can
describe
income
for
income
tax
purposes,
nor
are
we
satisfied
that
a
margin
account
balance
is
the
appropriate
measure
of
realized
income
for
tax
purposes.
Similarly,
while
we
recognize
that
the
“lower
of
cost
or
market"
method
advocated
by
the
respondent
suggests
that
unincurred
losses
can
be
deducted
in
the
calculation
of
income,
no
unincurred
losses
were
deducted
by
the
respondent
on
the
facts
of
this
case.
Accordingly,
we
need
not
determine
the
income
tax
validity
of
this
implication
of
the
"lower
of
cost
or
market"
method
in
this
case.
As
to
whether
it
is
appropriate
to
consider
the
loss
and
gain
legs
of
a
spread
transaction
in
isolation
from
one
another,
and
as
to
whether
subsection
245(1)
of
the
Income
Tax
Act,
R.S.C.
1952,
c.
148
(am.
S.C.
1970-71-72,
c.
63)
(the
"Act")
assists
the
appellant
in
this
case,
we
substantially
agree
with
the
reasons
of
the
learned
trial
judge
as
affirmed
by
Linden,
J.A.
of
the
Federal
Court
of
Appeal
on
these
points.
Accordingly,
the
appeal
is
dismissed
with
costs.
Appeal
dismissed.
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