Robertson
J.A.:
—
This
is
an
appeal
from
a
decision
of
the
Tax
Court
of
Canada
dated
December
31,
1993
which
dismissed
the
appellant
taxpayer’s
appeal
from
a
reassessment
of
income
tax
for
the
1986
taxation
year.
Therein
Bowman
J.T.C.C.
held
that
a
tenant
inducement
payment
in
the
amount
of
$2,650,000
received
by
the
taxpayer
was
income
rather
than
a
tax-free
capital
receipt.
He
also
concluded
that
the
payment
had
to
be
included
in
the
taxpayer’s
income
in
the
year
of
receipt,
that
is
to
say
it
could
not
be
deferred
and
amortized
over
the
life
of
the
lease.
We
have
not
been
persuaded
that
there
is
any
basis,
either
in
fact
or
in
law,
for
interfering
with
either
of
the
above
noted
conclusions.
Moreover,
nothing
that
was
decided
by
this
Court
in
Canderel
Ltd.
v.
R.,
(sub
nom.
Canderel
Ltd.
v.
Canada)
[1995]
2
C.T.C.
22,
(sub
nom.
R.
v.
Canderel)
95
D.T.C.
5101
(F.C.A.)
can
be
said
to
detract
from
the
result
reached
below
with
respect
to
the
“timing”
issue
and
despite
the
apparent
asym-
mentry:
see
R.
v.
Toronto
College
Park
Ltd.,
[1996]
3
C.T.C.
94,
96
D.T.C.
640
(F.C.A.)
at
page
6411.
While
the
matching
principle
will
be
of
relevance
in
cases
involving
“non-running
expenses”,
it
has
never
been
suggested
that
it
should
be
applied
to
the
exclusion
of
the
line
of
authorities
beginning
with
Robertson
v.
Minister
of
National
Revenue,
20
T.C.
655
(Ex.
Ct.).
For
these
reasons
the
appeal
must
be
dismissed
with
costs.
Appeal
dismissed.
Email this Content