Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
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September 18, 1990 |
| Appeals and Referral Division |
B. Buetow |
| |
Technical Review Section |
| Attention: James E. Nordin |
Technical Publications |
| |
Division |
| |
957-9226 |
| |
EACC9708 |
Subject: Omi Gupta Adverse Decision of the Tax Court
The taxpayer, a surgeon in Edmonton, reported a capital loss in 1983 on commodity transactions and income losses in 1984 and 1985 on such transactions. The Tax Court of Canada decided against the Department. It had assessed capital losses for 1984 and 1985. The basis for the judicial decision was that Dr. Gupta was engaged in an Adventure in the Nature of Trade.
This decision is in conflict with IT-346R which provides for speculators (paragraph 6) the choice of reporting wither on income or capital account provided such reporting is maintained in all subsequent years (paragraphs 7, 8)
21(1)(b) 23
Unlike shares, bonds or rental properties, commodities cannot yield income except when sold and contracts are bought to that end. This differs from assets such as paintings which can be bought to be owned and enjoyed.
24(1)
B. BuetowChiefTechnical Review SectionTechnical Publications Division
c.c. Roy ShultisB. Bryson
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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