A
J
Frost
(orally:
July
4,
1977):—I
shall
now
give
my
decision
in
Appeal
No
76-920
between
Harold
Adams,
appellant,
and
the
Minister
of
National
Revenue,
respondent.
This
is
an
income
tax
appeal
with
respect
to
the
appellant’s
1974
taxation
year.
In
his
1974
income
tax
return
the
appellant
sought
to
deduct
$10,721.10
as
a
non-capital
loss
comprising
cost
of
utilities,
food
and
other
family
expenses
incurred
in
the
year
1971;
and
in
his
notice
of
appeal
he
sought
to
carry
forward
a
total
loss
of
$25,000,
thereby
increasing
his
claim.
The
appellant
was
unemployed
in
1971,
but
contended
that
if
he
had
been
employed
he
probably
would
have
earned
an
amount
of
$25,000,
according
to
his
sworn
testimony.
In
other
words,
the
appellant
placed
a
value
of
$25,000
on
his
services
and,
because
he
was
unemployed,
he
contended
that
he
suffered
a
loss
of
$25,000
in
total,
and
that
this
amount
was
in
the
nature
of
a
non-capital
loss.
Bigmar
Enterprises
Limited
v
MNR,
[1974]
CTC
2341;
74
DTC
1242,
is
an
authority
for
the
proposition
that
there
was
no
such
thing
as
a
non-capital
loss
prior
to
1972;
the
Income
Tax
Act
only
recognized
business
losses.
The
appellant’s
original
claim
of
$10,721.10
was
in
respect
of
personal
and
living
expenses
in
1971,
the
next
preceding
year
to
1972.
He
is
not
entitled
to
the
deduction
as
the
amount
claimed
is
not
a
business
loss.
Also,
with
respect
to
the
difference
between
the
appellant’s
claim
for
$10,721.10
and
the
$25,000,
the
appellant
had
no
valid
claim
as
he
did
not
hold
any
office
in
the
1971
taxation
year.
He
was
unemployed
in
that
year
and
the
expenses
did
not
relate
in
any
way
to
an
office,
and
the
claim
does
not
in
any
way
relate
to
a
loss
from
an
office.
For
these
reasons
the
appeal
is
dismissed.
Appeal
dismissed.
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