Teskey T.C.J. (orally):

HIS HONOUR: In this appeal the issue is what is the proper income and the proper expenses for a series of rental properties and what are the proper expenses on the Guaranteed Immigration Service business of the appellant.

The parties agreed as to the items that were in dispute under the sole proprietorship of Guaranteed Immigration Services and an order will go reflecting that agreement.

Bowman T.C.J.:

I will render my judgment now.

This is one of the long line of cases involving the assertion the taxpayer did not have a “reasonable expectation of profit”.

What it really boils down to is, as I have said in other cases, is this a business or does it have the normal indicia of commerciality.

Teskey T.C.J.:

The Appellant appeals an assessment issued pursuant to subsection 159(3) of the Income Tax Act (the “Act’) for $88,880.59 in respect of distribution of the said amount from the estate of the late Herman Brock Armstrong, (the “deceased”), without first obtaining a clearance certificate from the Minister of National Revenue (the “Minister”) pursuant to subsection 159(2).

Issue

The issue before me is whether the Appellant can challenge the deceased’s assessment of income tax.

Dussault T.C.J.:

The appellant is challenging an assessment in the amount of $25,278.60 made pursuant to s. 160 of the Income Tax Act (“the Act”), notice of which is dated December 21, 1995.

Campbell J.:

Nadon J.:

Nurgitz J.:

The defendant brings a motion to dismiss the plaintiffs action or in the alternative to grant an order staying these proceedings pending a final determination of certain bankruptcy proceedings and an appeal pending in the Tax Court of Canada.

Loo J.:

Funduk, Registrar in Bankruptcy:

This is an application by Revenue Canada for an order, according to its notice of motion:

Robertson J.A.:

Assuming, without deciding, that the Tax Court of Canada possesses the inherent jurisdiction to set aside a notice of discontinuance or that the requisite jurisdiction arises under s. 172 of the Tax Court of Canada Rules, we are all of the view that this appeal cannot succeed on its merits.