Christie,
CJTC:—These
appeals
relate
to
the
appellant’s
1981
and
1982
taxation
years.
In
July
1981
he
received
$6,250
from
National
Trust
Company
Limited
of
Toronto
as
a
benefit
out
of
his
registered
retirement
savings
plan.
In
the
same
year
he
received
$9,956.37
from
the
federal
Department
of
Supply
and
Services
as
an
employee
in
the
public
service
of
Canada.
This
employment
commenced
in
July
of
1981.
In
July
1982,
again
in
his
capacity
as
an
employee
in
the
public
service,
he
received
$24,812.90
from
Supply
and
Services.
In
his
return
of
income
for
1981
the
appellant
excluded
the
$6,250
and
$9,956.37
in
calculating
his
total
income.
In
his
return
of
income
for
1982
he
included
the
two
amounts
just
mentioned
in
calculating
his
total
income,
but
excluded
the
$24,812.90.
It
is
the
position
of
the
appellant
that
his
course
of
action
is
correct
because
he
is
entitled
to
rely
on
a
taxation
year
from
February
1,
1980
to
January
31,
1981
in
respect
of
the
$6,250
and
$9,956.37
and
on
a
taxation
year
from
February
1,
1981
to
January
31,
1982
regarding
the
$24,812.90.
The
issue
is
whether
the
respondent
was
correct
in
assessing
the
appellant
by
including
the
$6,250
and
$9,956.37
as
income
of
the
appellant
during
the
calendar
year
1981
and
including
the
$24,812.90
as
similar
income
during
the
calendar
year
1982.
The
appellant
has
been
a
member
of
the
legal
profession
of
British
Columbia
for
a
number
of
years.
He
states
that
since
1977
the
fiscal
period
in
respect
of
business
being
carried
on
by
him
has
been
February
1
to
January
31
and
that
has
existed
throughout
the
time
relevant
to
this
litigation.
For
the
purposes
of
these
appeals
I
am
prepared
to
accept
that
the
fiscal
period
adopted
by
the
appellant
as
proprietor
of
a
business
continued
during
the
relevant
time
mentioned.
It
does
not,
however,
follow
that
he
is
entitled
to
succeed
on
these
appeals.
The
basic
rule
as
laid
down
by
paragraph
241(l)(b)
of
the
Income
Tax
Act,
RSC
1952,
c
148
(“the
Act”)
is
that
in
the
case
of
an
individual
a
taxation
year
is
a
calendar
year.
If
an
individual
is
the
proprietor
of
a
business,
he
shall
adopt
a
fiscal
period
for
the
business
which
he
conducts.
As
is
the
case
with
corporations
the
fiscal
period
adopted
by
the
individual
may,
but
need
not
correspond
with
a
calendar
year.
In
the
case
under
appeal
it
does
not.
Nevertheless
it
is
important
to
bear
in
mind
that
a
fiscal
period
adopted
by
an
individual
is
confined
in
its
application
to
income
arising
out
of
the
business
in
respect
of
which
it
was
adopted.
“Business”
is
defined
in
subsection
248(1)
of
the
Act
as
including
such
things
as
a
profession,
calling,
trade
or
manufacture,
but
excluding
employment.
The
same
subsection
defines
“employment”
as
including
the
position
of
an
individual
in
the
service
of
Her
Majesty.
The
income
of
the
appellant
from
his
employment
in
the
public
service
has
no
relationship
to
the
fiscal
period
adopted
by
him.
The
same
is
true
of
the
benefit
received
by
him
out
of
his
RRSP.
Subsection
11(1)
of
the
Act
provides
that
where
an
individual
is
a
proprietor
of
a
business
his
income
from
the
business
for
a
taxation
year
(ie,
calendar
year)
shall
be
deemed
to
be
his
income
from
the
business
for
the
fiscal
period
ending
in
the
year.
Thus,
if
an
individual
has
income
from
a
business
the
fiscal
period
of
which
terminates
on
January
31
as
well
as
income
from
sources
such
as
employment
or
a
benefit
received
out
of
an
RRSP,
he
is
required
to
file
a
return
of
income
based
on
a
calendar
year
and
to
include
therein
the
income
received
in
that
year
from
employment
and
the
RRSP
plus
the
income
received
from
the
business
during
the
fiscal
period
ending
on
January
31
in
the
calendar
year
to
which
the
return
of
income
relates.
It
follows
that
the
assessments
made
by
the
respondent
regarding
the
appellant’s
1981
and
1982
taxation
years
were
correct.
This
conclusion
is
in
accord
with
the
judgment
of
the
Exchequer
Court
of
Canada
in
Woodland
v
MNR,
[1953]
CTC
111;
53
DTC
1112
and
the
judgment
of
the
same
Court
in
Lorenzen
v
Minister
of
National
Revenue,
[1964]
CTC
138;
64
DTC
5091.
The
appeals
are
dismissed.
Appeals
dismissed.
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