Principal Issues:
1) Whether the activities of seeding, raising, and harvesting shellfish commercially, on a large scale, would meet the definition of “farming” as defined in subsection 248(1) of the Act.
2) If so, then would a tenure be considered “qualified farm property”, as defined in subsection 110.6(1) of the Act, and would a gain arising on the disposition of a tenure by an individual be considered to qualify for the capital gains exemption under subsection 110.6(2) of the Act?
Position:
1) Question of fact whether the activities carried on by a particular shellfish farm operator would qualify as “farming” for purposes of subsection 248(1) of the Act; however, on balance, the activities of growers of shellfish that follow a process whereby the shellfish are seeded, raised and harvested commercially, on a large scale, would likely be considered to be “farming” for purposes of that definition in subsection 248(1).
2) We do not have sufficient information about tenures to determine if they may qualify as “qualified farm property” in subsection 110.6(1).
Reasons: