Date: 20000519
Docket: A-710-97
Montréal, Quebec, Friday, May 19, 2000
CORAM: DÉCARY J.A.
LÉTOURNEAU J.A.
NOËL J.A.
BETWEEN:
DR. ARPAD G. FAZEKAS,
Appellant,
and
HER MAJESTY THE QUEEN,
Defendant.
JUDGMENT
The appeal is dismissed with costs.
Robert Décary
J.A.
Certified true translation
Martine Brunet, LL. B.
Date: 20000519
Docket: A-710-97
CORAM: DÉCARY J.A.
LÉTOURNEAU J.A.
NOËL J.A.
BETWEEN:
DR. ARPAD G. FAZEKAS,
Appellant,
and
HER MAJESTY THE QUEEN,
Defendant.
Hearing held at Montréal, Quebec on Friday, May 19, 2000
Judgment from the bench at Montréal, Quebec on Friday, May 19, 2000
REASONS FOR JUDGMENT OF THE COURT: LÉTOURNEAU J.A.
Date: 20000519
Docket: A-710-97
CORAM: DÉCARY J.A.
LÉTOURNEAU J.A.
NOËL J.A.
BETWEEN:
DR. ARPAD G. FAZEKAS,
Appellant,
and
HER MAJESTY THE QUEEN,
Defendant.
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the bench at Montréal,
Quebec on Friday, May 19, 2000)
LÉTOURNEAU J.A.
[1] We were not persuaded that Judge Archambault of the Tax Court of Canada made an error in affirming the Minister of National Revenue's refusal to allow the deduction made by the appellant of his alleged business losses for the 1991, 1992 and 1993 taxation years. The judge took into account all the relevant factors used in prior decisions to determine whether the appellant's business had a reasonable expectation of profit, namely in addition to those listed by Dickson J. in [1978] 1 S.C.R. 480">Moldowan v. The Queen, [1978] 1 S.C.R. 480,
| . . . the time required to make an activity of this nature profitable, the presence of the necessary ingredients for profits ultimately to be earned, the profit and loss situation for the years subsequent to the years at issue, the number of consecutive years during which losses were incurred, the increase in expenses and decrease in income in the course of the relevant periods, the persistence of the factors causing the losses, the absence of planning, and failure to adjust. |
See also Tonn v. R. [1996] 1 C.T.C. 205, where the personal benefit and recreational aspect of the activity were important factors to be taken into account and which were, in fact, considered.
[2] After a painstaking analysis of the evidence in terms of these factors, he arrived at a negative conclusion. This conclusion does not seem unreasonable to us and, in the absence of evidence of any manifest and overriding error that distorted his assessment of the facts, we cannot substitute our assessment for his.
[3] For these reasons, the appeal will be dismissed with costs.
Gilles Létourneau
J.A.
Certified true translation
Martine Brunet, LL. B.
BETWEEN:
DR. ARPAD G. FAZEKAS,
Appellant,
and
HER MAJESTY THE QUEEN,
Defendant.
REASONS FOR JUDGMENT
OF THE COURT
| NAMES OF COUNSEL AND SOLICITORS OF RECORD |
| STYLE OF CAUSE: DR. ARPAD G. FAZEKAS |
| PLACE OF HEARING: MONTREAL, QUEBEC |
| DATE OF HEARING: FRIDAY, MAY 19, 2000 |
| REASONS FOR JUDGMENT OF THE COURT FROM THE BENCH BY LÉTOURNEAU J.A. |
| APPEARANCES: Daniel Roussin |
| SOLICITORS OF RECORD: Daniel Roussin |
| Deputy Attorney General of Canada |
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