A
J
Frost
(orally:
July
6,
1977):—I
shall
now
give
my
decision
in
Appeal
No
76-650
between
George
R
McLaughlin,
appellant,
and
the
Minister
of
National
Revenue,
respondent.
This
is
an
income
tax
appeal
with
respect
to
the
appellant’s
1974
taxation
year.
The
appellant
was
Chairman
of
the
Ontario
Milk
Marketing
Board
and,
as
a
result
of
his
achievements.
in
the
field
of
dairy
farming
and
milk
marketing,
he
received
a
$10,000
award
from
the
H
R
MacMillan
Trust.
The
question
at
issue
in
this
appeal
is
whether
the
award
was
a
gift
for
meritorious
conduct
of
a
general
nature
or
“a
prize
for
achievement
in
the
field
of
endeavour
ordinarily
carried
on
by
the
taxpayer”.
On
the
evidence
I
find
that
although
the
appellant’s
contributions
to
Canadian
agriculture
were
wholly
connected
to
dairy
farming
and
milk
distributing,
the
award
the
appellant
received
was
not
in
the
nature
of
a
prize
for
‘‘an
endeavour
ordinarily
carried
on”
by
him.
A
prize,
in
my
opinion,
is
an
award
given
as
a
symbol
of
victory
for
superiority
arising
out
of
a
competitive
situation.
In
the
case
at
bar
the
appellant
received
a
gift
in
the
sense
formulated
above
for
general
meritorious
conduct
in
the
field
to
which
he
devoted
his
life,
not
a
prize
for
a
specific
achievement
in
the
dictionary
sense
within
the
limits
of
his
profession
or
business.
For
these
reasons
I
find
that
this
award
was
in
the
nature
of
a
genuine
gift,
and
falls
outside
the
meaning
of
paragraph
56(1)(n)
of
the
Income
Tax
Act,
SC
1970-71-72,
c
63,
as
amended,
and
I
allow
the
appeal.
The
appeal
is
therefore
allowed
and
the
matter
referred
back
to
the
respondent
for
reconsideration
and
reassessment
accordingly.
Appeal
allowed.
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