Isaac,
C.J.:—This
is
an
appeal
from
a
judgment
of
the
Trial
Division,
pronounced
February
20,1992,
dismissing
the
appellant's
appeal
from
a
judgment
of
the
Tax
Court
which
had
upheld
assessments
by
the
respondent
Minister
of
income
taxes
and
interest
payable
by
the
appellant
for
the
taxation
years
1980
and
1981.
The
issue
before
us,
as
it
was
before
the
learned
trial
judge,
was
whether
the
sum
of
$1,250,000
which
the
appellant
had
agreed
to
pay
to
a
corporation
from
which
it
had
purchased
an
interest
in
a
resource
property
was
a
Canadian
development
expense
within
the
meaning
of
subparagraph
66.2(5)(a)(iii)
of
the
Income
Tax
Act,
R.S.C.
1952,
c.
148
(am.
S.C.
1970-71-72,
c.
63)
(the
"Act")
as
it
stood
in
those
taxation
years.
The
trial
judge
found
on
the
evidence
before
him
that
the
amount
in
issue
was
not
such
an
expense
since
it
was
not
a
payment
made
for
the
preservation
of
the
appellant's
rights
in
respect
of
the
property.
We
agree
with
that
conclusion
and
with
the
reasons
that
the
trial
judge
gave
for
coming
to
it.
The
appeal
will,
therefore,
be
dismissed
with
costs.
Appeal
dismissed.
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