Zador v. Canada, 2007 FCA 175

Date: 20070430

Docket: A-412-06

Citation: 2007 FCA 175

CORAM:       LÉTOURNEAU J.A.

                        EVANS J.A.

                        SHARLOW J.A.

BETWEEN:

JOSEPH GEORGE ZADOR

Appellant

and

HER MAJESTY THE QUEEN

Respondent

Heard at Vancouver, British Columbia, on April 30, 2007.

Judgment delivered from the Bench at Vancouver, British Columbia, on April 30, 2007.

REASONS FOR JUDGMENT OF THE  COURT BY:                                            SHARLOW J.A.

Date: 20070430

Docket: A-412-06

Citation: 2007 FCA 175

CORAM:       LÉTOURNEAU J.A.

                        EVANS J.A.

                        SHARLOW J.A.

BETWEEN:

JOSEPH GEORGE ZADOR

Appellant

and

HER MAJESTY THE QUEEN

Respondent

REASONS FOR JUDGMENT OF THE COURT

(Delivered from the Bench at Vancouver, British Columbia, on April 30, 2007)

SHARLOW J.A.

[1]               This is an appeal of a judgment of the Tax Court of Canada (2006 TCC 545) dismissing the appellants’ income tax appeal for 2004.

[2]               The issue is whether the Tax Court Judge was correct when he concluded that a moving expense is deductible under subsection 62(1) of the Income Tax Act, R.S.C. 1985, c. 1 (5^th supp.) only when it is paid. The relevant parts of subsection 62(1) reads as follows (my emphasis):

[3]               Mr. Zador argues that a moving expense is deductible when the taxpayer incurs a legal obligation to pay it. The Tax Court Judge did not accept Mr. Zador’s interpretation. He concluded that subsection 62(1) requires that a moving expense be paid before it is eligible for a deduction under that provision. We agree with him. In our view, the words of subsection 62(1) cannot reasonably bear the interpretation proposed by Mr. Zador.

[4]               This appeal will be dismissed with costs.

“K. Sharlow”

FEDERAL COURT OF APPEAL

SOLICITORS OF RECORD

DOCKET:                                                                              A-412-06

STYLE OF CAUSE:                                                              JOSEPH GEORGE ZADOR v. HMQ

PLACE OF HEARING:                                                        Vancouver, British Columbia

DATE OF HEARING:                                                          April 30, 2007

REASONS FOR JUDGMENT BY:                                     LÉTOURNEAU J.A.

                                                                                                EVANS J.A.

                                                                                                SHARLOW J.A.

DELIVERED FROM THE BENCH BY:                            SHARLOW J.A.

DATED:                                                                                 April 30, 2007

APPEARANCES:

Joseph George Zador                                                               ON HIS OWN BEHALF

Sara Fairbridge                                                                         FOR THE RESPONDENT

SOLICITORS OF RECORD: