Létourneau
J.A.:
We
are
satisfied
that
Judge
St-Onge
of
the
Tax
Court
of
Canada
did
not
err
in
applying
the
principles
for
determining
the
applicant’s
gross,
net
and
taxable
income
in
view
of
the
deductions
to
which
he
was
entitled
as
a
result
of
what
is
commonly
known
as
the
taxable
capital
gains
exemption
granted
by
the
Income
Tax
Act.
As
regards
that
taxable
capital
gains
exemption,
subsection
110.6(3)
of
the
Act
provides
that
the
exempt
amount
may
be
“deducted”
from
the
taxpayer’s
net
income
to
determine
the
taxpayer’s
taxable
income.
Moreover,
section
2
of
the
Act
defines
“taxable
income”
as
the
taxpayer’s
income
for
the
year
...
minus
the
deductions
permitted
by
Division
C
of
the
Act,
which
contains
the
lifetime
capital
gains
exemption.
It
is
therefore
clear
that
Parliament
viewed
the
taxable
capital
gains
exemption
as
a
deduction,
and
it
is
this
legal
standard
that
the
Department
applied
in
dealing
with
the
applicant’s
file.
There
is
no
doubt
that,
as
shown
by
the
applicant,
this
approach
chosen
by
Parliament
has
an
impact
on
a
retired
person
who
has
a
capital
gain
and
whose
income
exceeds
$53,215
as
a
result,
because
such
a
person
must
repay
a
portion
of
his
or
her
old
age
security
benefits.
However,
Canadian
taxpayers
have
been
clearly
notified
of
that
impact
by
the
Department
of
National
Revenue
before
they
decide
to
have
a
taxable
capital
gain
and
claim
the
deduction.
Finally,
we
cannot
accept
the
applicant’s
argument
that
the
legislation
discriminates
on
the
basis
of
age
in
this
area.
The
negative
impact
noted
by
the
applicant
is
related
to
a
taxpayer’s
income
rather
than
his
or
her
age.
Accordingly,
the
application
for
judicial
review
should
be
dismissed.
Application
dismissed.
Email this Content