John
B
Goetz:—This
is
an
appeal
by
the
appellant
with
respect
to
his
1977
taxation
year.
The
appellant
in
his
1977
tax
return
claimed
a
restricted
farm
loss
of
$4,612.72,
which
he
carried
forward
from
1974
and
1975.
The
Minister,
by
reassessment,
restricted
the
farm
loss
carried
forward
to
the
sum
of
$760.89,
and
in
so
doing
relied
upon
subsection
9(1)
and
paragraph
111(1)(c)
of
the
Income
Tax
Act,
SC
1970-71-72,
c
63,
as
amended.
Facts
The
appellant’s
occupation
was
that
of
mine
foreman
at
a
mine
near
Saskatoon.
Farming,
as
he
testified,
was
a
“sideline”.
The
appellant
stated
that
he
had
been
“harassed”
by
the
Department
of
National
Revenue
with
respect
to
deductions
of
previous
farm
losses,
and
when
he
filed
his
1977
return,
he
stated:
“I
deliberately
showed
a
small
profit
for
1977”,
and
did
so
by
not
taking
the
full
capital
cost
allowance.
Consequently,
he
only
showed
a
net
farm
profit
of
$760.89.
His
total
net
income
for
the
1977
taxation
year
was
$19,407.
The
appellant,
in
attempting
to
carry
forward
previous
farm
losses,
relied
on
the
Farmers
and
Fishermen’s
Guide,
chapter
6.
Unfortunately,
he
did
not
fully
read
or
alternatively
comprehend
the
import
of
the
information
disclosed
therein.
Under
cross-examination
he
admitted
that
he
was
not
in
the
business
of
farming.
In
support
of
his
assessment,
the
respondent
relied
upon
paragraph
111(1)(c)
of
the
Income
Tax
Act
which
reads
as
follows:
111.(1)
For
the
purpose
of
computing
the
taxable
income
of
a
taxpayer
for
a
taxation
year,
there
may
be
deducted
from
the
income
for
the
year
such
of
the
following
amounts
as
are
applicable:
(c)
restricted
farm
losses
of
the
taxpayer
for
the
5
taxation
years
immediately
preceding
and
the
taxation
year
immediately
following
the
taxation
year,
but
no
amount
is
deductible
in
respect
of
a
restricted
farm
loss
from
the
income
for
any
year
except
to
the
extent
of
the
lesser
of
(i)
the
taxpayer’s
income
for
the
year
minus
all
deductions
permitted
by
the
provisions
of
this
Division
other
than
this
subsection
or
section
109,
and
(ii)
his
incomes
for
the
year
from
all
farming
businesses
carried
on
by
him.
Clearly,
from
the
above
facts,
the
appellant
is
precluded
from
claiming
the
restricted
farm
losses
in
the
amount
of
$4,612.72
in
that
his
net
farm
income
for
the
taxation
year
1977
amounted
to
only
$760.89
and
consequently,
the
assessment
is
correct.
(See
Fred
S
Goring
and
F
Dennis
Goring
v
MNR,
[1976]
CTC
2255;
76
DTC
1202.)
For
the
above
reasons,
I
dismiss
the
appeal.
Appeal
dismissed.
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