Docket: 2006-3873(IT)I
BETWEEN:
NINE TEN ST. CLAIR AVE. W. LIMITED,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
____________________________________________________________________
Appeals heard on August 29, 2007, at Toronto, Ontario
Before: The Honourable Justice L.M.
Little
Appearances:
|
Agent for the Appellant:
|
Mike
Lombardi
|
|
|
|
|
Counsel for the Respondent:
|
Laurent Bartleman
|
____________________________________________________________________
JUDGMENT
The
appeals from the assessments made under the Income Tax Act for the 2001,
2002, 2003, 2004 and 2005 taxation years are dismissed, without costs, in
accordance with the attached Reasons for Judgment.
Signed at Toronto, Ontario, this 17th day of October 2007.
“L.M. Little”
Citation: 2007TCC624
Date: 20071017
Docket: 2006-3873(IT)I
BETWEEN:
NINE TEN ST. CLAIR AVE. W. LIMITED,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
Little J.
A. Facts
[1] The Appellant is a
Company incorporated under the laws of the Province of Ontario.
[2] The Appellant owned
property located at 908-916 St. Clair Avenue West in the City of Toronto.
[3] The Appellant
requested to have its 2000 taxation year reassessed in order to allow a claim
of $83,819.00 as an additional deduction against net income.
[4] The Minister of
National Revenue (the “Minister”) determined that the Appellant incurred a
non-capital loss of no greater than $8,288.00 in its 2000 year.
[5] The Minister
reassessed the Appellant’s 2001 taxation year and determined that the Appellant
had net income of $31,471.00.
[6] After the Minister
assessed the Appellant for its 2001 year the Appellant claimed that the amount
of $92,107.00 which it had reported as a terminal loss was a non-capital loss.
[7] The Minister refused
the request made by the Appellant to treat the amount of $92,107.00 as a
non-capital loss.
[8] The Minister
determined that the Appellant had net business income of $2,049.00 in its 2002
taxation year.
[9] The Appellant also
requested that the Minister reassess its income for the 2003 and 2004 taxation
years. The Appellant does not agree with the position adopted by the Minister
in the 2003 and 2004 taxation years.
B. Issues
[10] The issues are
whether the Minister properly:
a) denied
the Appellant’s requested adjustments to its 2000 taxation year in order to
allow it to claim $83,819.00 as an additional deduction against net income,
resulting in a non-capital loss of $92,107.00 in its 2000 taxation year to be
carried forward to its 2001 taxation year;
b) reassessed
the Appellant’s 2003 income to include $234,199.00 in taxable capital gains and
$270,371.00 to recapture capital cost allowances in its 2003 taxation year
income; and
c) reassessed
the Appellant’s 2004 income to reduce the amount of taxable capital gains
reported by $35,633.00.
C. Analysis and Decision
[11] Canadian courts have
said on numerous occasions that the Appellant has the onus or burden of
establishing that the assessments or reassessments issued by the Minister are
incorrect. Based on the evidence and argument presented by the agent for the
Appellant, I have not been persuaded that the assessments and reassessments
issued by the Minister were incorrect.
[12] The appeals are
dismissed without costs.
Signed at Toronto, Ontario, this 17th day of October 2007.
“L.M. Little”
CITATION: 2007TCC624
COURT FILE NO.: 2006-3873(IT)I
STYLE OF CAUSE: Nine Ten St. Clair Ave. W. Limited
and
Her Majesty the Queen
PLACE OF HEARING: Toronto, Ontario
DATE OF HEARING: August 29, 2007
REASONS FOR JUDGMENT BY: The
Honourable Justice L.M. Little
DATE OF JUDGMENT: October 17, 2007
APPEARANCES:
|
Agent for the
Appellant:
|
Mike Lombardi
|
|
|
|
|
Counsel for the
Respondent:
|
Laurent Bartleman
|
COUNSEL OF RECORD:
For the Appellant:
Name:
Firm:
For the
Respondent: John H. Sims, Q.C.
Deputy
Attorney General of Canada
Ottawa,
Canada
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