Linden J:
While the reasons are not as complete and precise as they could be, the Tax Court Judge made neither palpable error of fact nor mistake of law which would allow this Court to interfere.
The Tax Court Judge correctly found that, after three years passed, there was no reasonable expectation of profit from the property in question, so that the Moldowan test was not met [Moldowan v. R. (1977), [1978] 1 S.C.R. 480 (S.C.C.)]. It was clear “from the outset”, to use the words of Mohammad [Mohammad v. R., [1997] 3 C.T.C. 321 (Fed. C.A.)], that there was no possible way that the taxpayer could make a profit from the arrangement, which involved a personal element in that he resided in the property himself. (Tonn) [Tonn v. R. (1995), 96 D.T.C. 6001 (Fed. C.A.)]
The application should be dismissed.
Application dismissed.
Email this Content