Bastin,
DJ:—This
action
is
an
appeal
from
the
decision
of
the
Tax
Review
Board
which
upheld
an
assessment
by
the
Minister
of
income
tax
on
a
payment
received
by
the
plaintiff
of
$83,882.16
on
the
ground
that
it
was
interest.
I
concur
with
that
decision.
On
April
1,
1970
the
plaintiff
purchased
a
hospital
in
California
and
on
June
1,
1970
sold
it
for
$708,000,
receiving
notes
which
were
assigned
to
a
California
bank.
Exhibit
A-1
is
an
instalment
note
secured
by
trust
deed
which
reads
as
follows:
on
or
before
June
1,
1970
the
sum
of
$83,882.16
(to
be
paid)
as
interest
for
the
period
June
1,
1970
to
Dec.
31,
1971.
During
1970
the
plaintiff
received
a
payment
of
$83,882.16
which
it
claims
in
this
action
to
be
principal
and
not
interest.
Whether
the
payment
in
question
was
principal
or
interest
is
a
question
of
fact.
If
the
payment
was
made
in
fulfilment
of
the
obligation
in
Exhibit
A-1
it
is
not
open
to
the
plaintiff
at
a
later
date
to
decide
for
its
advantage
to
treat
the
payment
as
a
down
payment
on
account
of
the
principal
debt.
The
fact
that
the
amount
received
by
the
plaintiff
was
the
exact
amount
called
for
by
the
instalment
note
creates
a
presumption
that
the
payment
was
on
account
of
interest
and
the
evidence
tendered
by
the
plaintiff
does
not
rebut
this
presumption.
I
dismiss
the
action
with
costs.
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