Brule
J.T.C.C.:
These
appeals
are
primarily
those
of
Robert
Zimmer
and
Miriam
Daniels.
The
appeal
of
Elizabeth
Zimmer
hinges
on
that
of
her
husband
Robert
Zimmer.
She
originally
claimed
the
child
tax
credit
as
allowed
by
the
Income
Tax
Act
(the
“Act”)
and
such
is
only
to
be
allowed
if
her
husband
is
successful
in
his
appeal
hereto.
Robert
Zimmer
and
Miriam
Daniels
are
appealing
the
disallowance
by
each
of
an
allowable
Business
Investment
Loss
(ABIL)
for
their
1992
taxation
year,
the
former
in
the
amount
of
$18,750.00
and
the
latter
in
the
amount
of
$14,062.50
which
amount
had
originally
been
$18,750.00.
Facts
In
May
1992,
the
two
taxpayers,
Robert
Zimmer
and
Miriam
Daniels
caused
Ortan
Investments
Inc.
to
be
incorporated
which
was
to
be
used
as
the
investing
corporation,
the
latter
to
be
funded
by
Mr.
Zimmer
and
Daniels.
Ortan,
it
was
claimed,
advanced
funds
to
Mirdon
Inc.
and
P.F.
Thompson
Ltd.
These
companies
declared
bankruptcy
late
in
1992.
As
a
result
of
these
bankruptcies
Robert
Zimmer
and
Miriam
Daniels
claimed
the
ABIL’s
mentioned
above.
Analysis
In
order
to
claim
ABIL’s,
the
taxpayers
must
show
that
they
had
a
bad
debt
in
1992.
It
was
obvious
at
the
outset
that
the
agent
for
the
appellants
was
referring
to
the
definition
of
a
small
business
corporation
as
defined
in
the
Small
Business
Development
Corporations
Act.
This
definition
means
a
corporation
having
not
more
than
the
prescribed
number
of
employees.
This
is
not
the
definition
of
a
small
business
corporation
that
is
found
in
subsection
248(1)
of
the
Act.
While
there
is
a
substantial
difference
in
the
two
definitions,
there
was
not
enough
evidence
to
consider
the
corporations
under
the
Act.
Robert
Zimmer
was
not
present
at
the
hearing.
The
Court
had
no
evidence
that
any
debt
had
become
bad
in
1992.
Ortan
was
not
in
receivership
according
to
the
evidence
and
while
Mirdon
and
P.F.
Thompson
were
put
into
receivership
in
December
of
1992,
according
to
the
appellants’
accountant,
the
receivers,
it
was
said,
were
appointed
to
see
what
could
be
salvaged
of
the
companies.
If
any
debt
existed
it
was
not
proven
bad
because
the
companies
may
have
been
able
to
carry
on
business.
According
to
paragraph
50(1
)(a)
of
the
Act,
a
debt
owing
to
a
taxpayer
at
the
end
of
a
taxation
year
is
established
by
the
taxpayer
to
have
become
a
bad
debt
in
the
year.
Such
did
not
happen
in
these
appeals.
It
must
be
established
that
the
debt
existed
in
1992
and
became
bad.
All
in
all
the
evidence
was
not
consistent
with
the
information
alleged
in
the
Notices
of
Appeal
such
as
the
requirement
of
subparagraph
50(l)(b)(iii).
The
net
result
is
that
the
appeals
of
Robert
Zimmer
and
Miriam
Daniels
are
dismissed
and
also
that
of
Elizabeth
Zimmer
is
also
dismissed
because
of
the
disposition
of
the
appeal
of
Robert
Zimmer.
Appeals
dismissed.
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