Isaac
C.J.:
This
appeal
is
from
a
judgment
of
the
Tax
Court
of
Canada
which
dismissed
the
appellant’s
appeal
from
the
assessment
made
by
the
Minister
of
National
Revenue
under
the
Income
Tax
Act
(the
“Act?
’)
for
the
1987
taxation
year
on
the
basis
that
certain
loans
in
the
amount
of
$7,224,048.33
made
by
County
Investments
Ltd.
(“County”)
(of
which
the
appellant
was
the
directing
mind)
were
income
in
the
hands
of
the
appellant
and
were
not
exempt
from
taxation
by
virtue
of
paragraph
15
2(a)(i)
of
the
Act,
which
reads:
Where
a
person
...
is
connected
with
a
shareholder
of
a
particular
corporation
...
and
the
person
...
has
in
a
taxation
year
received
a
loan
from
or
has
become
indebted
to
the
particular
corporation
...
the
amount
of
the
loan
or
indebtedness
shall
be
included
in
computing
the
income
for
the
year
of
the
person
...
unless
(a)
the
loan
was
made
or
the
indebtedness
arose
(i)
in
the
ordinary
course
of
the
lender’s
or
creditor’s
business
and,
in
the
case
of
a
loan,
the
lending
of
money
was
part
of
its
ordinary
business,
and
bona
fide
arrangements
were
made,
at
the
time
the
loan
was
made
or
the
indebtedness
arose,
for
repayment
thereof
within
a
reasonable
time....
The
learned
Tax
Court
Judge
found,
on
the
evidence
before
him,
that
County
was
in
the
business
of
loaning
money
and
did
in
fact
lend
money
to
the
appellant
and
others.
He
also
found
that
the
loans
made
to
the
appellant
in
1987
were
not
made
in
the
ordinary
course
of
its
business
and,
in
any
case,
at
the
time
the
loans
were
made,
no
bona
fide
arrangements
were
made
for
their
repayment
within
a
reasonable
time.
We
did
not
call
upon
counsel
for
the
Minister
for
argument,
even
though
he
had
challenged
the
finding
by
the
Tax
Court
Judge
that
County
was
in
the
business
of
lending
money,
because
we
are
all
of
the
view
that
the
Tax
Court
Judge
was
right
in
concluding,
in
the
evidence,
that
at
the
time
the
loans
were
made,
no
arrangements
were
made
for
their
repayment
within
a
reasonable
time,
as
explained
by
Pratte,
J.A.
for
the
Court
in
Silden
v
Minister
of
National
Revenue
(1993),
93
D.T.C.
5362
(Fed.
C.A.),
at
536.
The
appeal
will
therefore
be
dismissed
with
costs.
Appeal
dismissed.
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