SIDNEY
SMITH,
D.J.:—This
is
an
appeal
from
the
decision
of
the
Minister
of
National
Revenue,
dated
12th
June,
1950,
affirm-
ing
the
assessments
for
excess
profits
tax
in
respect
of
the
taxation
years
ended
3lst
March,
1946,
1947
and
1948,
upon
the
ground
that
they
were
made
in
accordance
with
Section
15A
of
the
Excess
Profits
Tax
Act
in
that
the
sum
of
the
capital
employed
by
the
appellant
company
and
by
Allison
Logging
Company
Limited
(the
parent
company)
at
the
time
of
incorporation
of
the
appellant
company
was
not
substantially
greater
than
the
eapital
employed
by
Allison
Logging
Company
Limited
prior
to
the
incorporation
of
appellant.
The
date
of
incorporation
of
appellant
was
14th
March,
1942,
and
on
24th
February,
1943,
the
Allison
Company
obtained
control
of
appellant.
Appellant
contends
that
the
time
of
its
incorporation
within
Section
15A
is
the
latter
date,
while
respondent
says
it
is
the
former.
It
is
not
necessary
in
the
present
case,
as
I
see,
to
reach
a
conclusion
on
this
point.
But
assuming
that
it
was
24th
February,
1943,
then
at
that
date
the
capital
employed
by
appellant
company
was
$49,604.00,
of
which
$49,600.00
came
from
the
working
capital
of
the
Allison
Company,
and
$4.00
from
outside
sources.
Therefore
it
seems
to
me
that
however
one
looks
at
this
matter
the
combined
capital
of
the
two
was
not
substantially
greater
than
that
of
the
Allison
Company
prior
to
incorporation
of
appellant.
Appellant,
however,
points
to
Section
1
of
the
First
Schedule
in
the
Act
and
says
that
the
Allison
capital
must
be
considered
as
of
1st
December,
1941,
if
computed
in
accordance
with
that
section.
But
with
respect,
I
do
not
see
that
the
section
has
any
relevance
here.
It
defines
"
"
capital
employed
in
any
year
or
fiscal
period,
‘
‘
while
Section
15A
is
concerned
with
capital
employed
‘
‘
at
the
time
of
incorporation’’
and
"‘prior
to
incorporation’’.
This
seems
to
me
to
be
quite
a
different
thing.
I
would
dismiss
the
appeal
with
costs.
Appeal
dismissed.
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