R. v. Mara Properties Ltd.,  2 S.C.R. 161
Mara Properties Limited Appellant
Her Majesty The Queen Respondent
Indexed as: R. v. Mara Properties Ltd.
File No.: 24684.
1996: May 21.
Present: La Forest, L’Heureux‑Dubé, Sopinka, Cory, McLachlin, Iacobucci and Major JJ.
on appeal from the federal court of appeal
Income Tax -- Non-capital loss -- Company disposing of trading asset acquired from subsidiary -- Whether property retained character as inventory.
APPEAL from a judgment of the Federal Court of Appeal,  2 F.C. 433, 95 D.T.C. 5168,  2 C.T.C. 86, 179 N.R. 363, allowing an appeal from a judgment of Kempo J.T.C.C., 93 D.T.C. 1449,  2 C.T.C. 3189. Appeal allowed.
Warren J. A. Mitchell, Q.C., and Karen Sharlow, for the appellant.
Roger Taylor and Brent Paris, for the respondent.
The judgment of the Court was delivered orally by
1 La Forest J. -- We agree with the conclusion reached by the Tax Court and McDonald J.A., the dissenting judge in the Court of Appeal,  2 F.C. 433, 95 D.T.C. 5168,  2 C.T.C. 86, 179 N.R. 363. In our view, in the circumstances of this case, the property retained its character as inventory in the hands of the appellant.
2 Accordingly, the appeal is allowed with costs throughout, the judgment of the Court of Appeal is set aside, and the judgment of the Tax Court, 93 D.T.C. 1449,  2 C.T.C. 3189, is restored.
Solicitors for the appellant: Thorsteinssons, Vancouver.
Solicitor for the respondent: The Department of Justice, Vancouver.