Land of U.S.-resident (which had an adjusted cost base to him of $17,050 based on its V-day value) was acquired by him in 1952 at a cost of $7,000 and disposed of by him for $91,000 in 1989.
Couture C.J. allowed the appeal of the individual's estate from a reassessment of the Minister that sought to calculate the portion of the gain that was exempt under paragraph 9 of Article XIII of the U.S. Convention on the basis of the number of months of ownership subsequent to December 31, 1971 rather than subsequent to the date of acquisition in 1952. In doing so Couture C.J. referred to the Technical Explanation of the U.S. Treasury Department and to IT-173R2, para. 14, both of which referred to the period of [total] ownership, and also found that s. 3 of the Income Tax Conventions Interpretation Act had no application because paragraph 9 of Article XIII referred to the "gain" rather than to the "capital gain".