St-Onge,
TCJ
[ORALLY]:—The
appeal
of
Mr
William
Cameron
was
heard
on
the
3rd
of
February,
1984
at
the
city
of
Vancouver,
British
Columbia,
and
it
has
to
do
with
the
transfer
of
a
lot
by
the
appellant
to
his
son
and
daughter-in-
law
in
the
appellant’s
1977
taxation
year.
The
facts
of
this
appeal
are
well
set
out
in
the
reply
to
the
notice
of
appeal
at
paragraphs
2
to
5
inclusive
which
read
as
follows:
2.
By
Deed
of
Land
made
September
21,
1977,
the
Appellant
conveyed
Lot
C
Parcel
F
D.L.
1391
Plan
16885
(“the
property’’)
to
his
son
and
daughter-in-law,
John
and
Cynthia
Cameron
for
the
sum
of
$1.00
and
other
good
consideration.
3.
The
transaction
was
not
reported
in
the
Appellant’s
Income
Tax
Return
for
1977
or
for
any
other
year.
4.
By
Notice
of
Reassessment
for
the
1977
taxation
year
dated
July
9,
1982,
the
Respondent
reassessed
the
taxpayer
for
a
capital
gain
on
the
sale
of
the
property
as
follows:
|
Fair
Market
Value
Sept.
1977
|
—
|
$33,000
|
|
V-Day
Value
Dec.
1971
|
—
|
$13,000
|
|
Capital
Gain
|
|
$20,000
|
|
Taxable
Capital
Gain
|
|
$10,000
|
5.
In
so
reassessing
the
Appellant
for
the
1977
taxation
year,
including
the
sum
of
10,000
in
his
income
the
Respondent
assumed:
(a)
the
Appellant
disposed
of
the
property
in
1977;
(b)
the
Appellant
disposed
of
the
property
to
persons
with
whom
he
was
not
dealing
at
arm’s
length;
(c)
the
fair
market
value
of
the
property
at
December
31,
1971
was
no
less
than
$13,000;
(d)
the
fair
market
value
of
the
property
at
the
time
it
was
disposed
of
was
no
less
than
$33,000.
At
the
hearing
the
appellant
admitted
paragraphs
2,
3
and
4
of
the
reply
to
the
notice
of
appeal.
The
evidence
adduced
has
shown
that
there
was
a
verbal
agreement,
in
1974,
between
the
father
and
the
son
in
order
that
the
son
would
become
the
owner
of
the
lot
measuring
115
front
feet
by
600
feet.
They
were
both
heard
as
witnesses
and
they
testified
that
the
price
was
fixed
in
1974
at
$10,000
which
was
the
government
land
tax
assessment.
The
son
even
said
at
the
time
he
thought
it
was
a
little
bit
high.
Was
there
any
evidence
to
show
that
the
son
took
possession
of
this
property
around
1974?
Indeed
there
was,
because
in
1975
he
started
to
build
his
house.
He
was
going
to
get
married
and
it
was
exactly
for
this
purpose
that
he
acquired
that
lot
from
his
father.
There
is
no
doubt
in
my
mind
that
the
disposition
of
property
took
place
in
1974
and
there
is
an
agreement
between
the
lawyers
for
the
parties
to
the
effect
that
if
it
is
so,
it
is
statute-
barred.
Consequently,
for
these
reasons,
the
appeal
is
allowed.
Appeal
allowed
Email this Content