Date: 19971211
Docket: A-625-96
CORAM: THE CHIEF JUSTICE
PRATTE J.A.
MARCEAU J.A.
BETWEEN:
SANDRA E. GERNHART
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
Heard at Ottawa, Ontario on Thursday, December 11, 1997.
Judgment delivered from the bench at Ottawa, Ontario on Thursday, December 11, 1997.
REASONS FOR JUDGMENT BY: THE COURT
Date: 19971211
Docket: A-625-96
CORAM: THE CHIEF JUSTICE
PRATTE J.A.
MARCEAU J.A.
BETWEEN:
SANDRA E. GERNHART
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Ottawa, Ontario
on Thursday, December 11, 1997)
[1] We are all of the view that this appeal cannot succeed. As the learned Tax Court Judge characterized it in his reasons (A.B. p. 512), the payment in issue in this appeal was "made pursuant to the appellant's overall, on-going compensation package for services rendered" in Canada as an employee of General Motors of Canada Limited. As such it was income of the Appellant for the taxation year 1990 within the meaning of subsection 5(1) of the Income Tax Act, it being salary, wages, or other renumeration from her employment. On this basis alone, the learned Tax Court Judge was right in dismissing the Appellant's appeal from the Minister's assessment for the 1990 taxation year.
[2] Even if the taxability of the amount in issue in this appeal were governed by section 6 of the Act, as if there had been a real reimbursement for an expense actually made, then the line of jurisprudence such as Ransom v. M.N.R. [1967] C.T.C. 346, 67 D.T.C. 5235 (Ex Ct) and the cases following it, upon which the appellant relies, would not be applicable. The reason is that each of those cases dealt with losses or payments made by the employee in order to perform the services and not as here, an expense made by him as a consequence of the receipt of the renumeration.
[3] The appeal will therefore be dismissed with costs.
"Julius A. Isaac"
C.J.
FEDERAL COURT OF APPEAL
NAMES OF COUNSEL AND SOLICITORS OF RECORD
COURT FILE NO.: A-625-96
STYLE OF CAUSE:Sandra E. Gernhart v. The Queen
PLACE OF HEARING: Ottawa
DATE OF HEARING: December 11, 1997
REASONS FOR JUDGMENT
RENDERED FROM THE BENCH BY: The Chief Justice Pratte, Marceau J.J.A.
APPEARANCES:
Mr. Richard Pound, Q.C. Mr. R. Murray
Mr. J. Baxendale for the Appellant
Mr. R. Leclair for the Respondent
SOLICITORS OF RECORD:
Stikeman, Elliot
Montreal for the Appellant
George Thomson
Deputy Attorney General for the Respondent
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