McDonald
J.A.:—These
are
appeals
from
a
reported
decision
of
the
Trial
Division
([1993]
1
C.T.C.
148,
93
D.T.C.
5067),
which
dismissed
appeals
from
the
reassessments
of
the
appellant’s
1985
and
1986
income
tax
returns.
We
are
of
the
view
that
the
learned
trial
judge
was
correct
in
his
conclusion
that
the
Realwest
shares
ceased
to
be
a
current
source
of
income
to
the
appellant
after
July
25,
1985,
and
that
the
interest
expense
for
moneys
borrowed
to
acquire
them
was
no
longer
deductible
except
to
the
extent
of
the
value
of
the
TWL
shares
for
which
they
were
exchanged
(see
The
Queen
v.
Bronfman
Trust,
[1987]
1
S.C.R.
32,
[1987]
1
C.T.C.
117,
87
D.T.C.
5059).
We
are
in
substantial
agreement
with
the
reasons
for
judgment
of
the
learned
trial
judge
but
would
observe
that
the
results
oriented
approach
to
interpreting
the
Income
Tax
Act,
R.S.C.
1952,
c.
148
(am.
S.C.
1970-71-72,
c.
63)
(the
"Act")
evidenced
by
the
following
statement
is
acceptable
vid.
Antosko
v.
The
Queen,
[1994]
2
C.T.C.
25
(S.C.C.):
Therefore,
since
the
plaintiff
has
claimed
the
allowable
business
investment
loss
he
is
deemed
to
have
disposed
of
the
Realwest
shares.
I
believe
it
would
be
contrary
to
Parliament's
intent
to
allow
a
taxpayer
to,
at
one
level,
defer
a
capital
gain
where
a
disposition
of
property
has
occurred,
and
at
another
level
to
allow
the
taxpayers
to
bring
themselves
within
the
interest
deductibility
provision
that
requires
that
the
source
of
the
income
continue
to
exist.
The
appeals
will
be
dismissed
with
costs.
Appeals
dismissed.
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