Bell T.C.J.:

Issues:

The issues in this appeal, as stated in the Notice of Appeal and Reply to the Notice of Appeal are:

(a) whether the Appellant had a reasonable expectation of profit from certain activities carried on by him in the 1991 and 1992 taxation years, and

(b) whether the expenses incurred and claimed by the Appellant were incurred for the purpose of gaining or producing income from a business within the meaning of paragraph 18( 1 (a) of the Income Tax Act (‘'Act").

Bowman T.C.J. .

These appeals are from assessments for the 1986 and 1987 taxation years. The issue is whether the appellant, having acquired for $4,000,000 a chain of two Canadian corporations and a U.S. corporation, is entitled to a capital loss in 1986 of about $113,000,000 when the two Canadian companies are wound up and the U.S. company is sold for $20.00.

The facts are relatively uncomplicated.

Teskey T.C.J.:

The Appellant, Fred C. Hansen, a businessman and consultant, appeals his assessments of income tax for the years 1988, 1990, 1991, 1992 and 1993.

The Appellant, H. Robert Hemming, a chartered accountant appeals his assessments of income tax for the years 1993 and 1994.

The Appellant, John Amirault, a professional engineer, appeals his assessments of income tax for the years 1991, 1992 and 1993.

These three appeals were heard on common evidence.

Hamlyn T.C.J.:

This appeal is in respect of the Appellant’s 1988 taxation year.

Admissions from the Pleadings

The Appellant, The Great-West Life Assurance Company (“GWL”), in its Notice of Appeal, states the following:

1. The Appellant is a corporation incorporated under the laws of Canada and has its head office at 100 Osborne Street N., Winnipeg, Manitoba, R3C 3A5.

Bell T.C.J. (orally):

HIS HONOUR: Yes, sir.

Mr. POORE: Thank you, Your Honour. Mr. Gonthier and I have come to an agreement to Consent Judgment. Basically, the automobile expense in 1993 of $1,585.00 for more sense will be disallowed and all of the other expense claims will be allowed.

HIS HONOUR: Okay let me go to the right chart then. Do I go to the schedule “B”?

Mr. POORE: Schedule “B” Your Honour.

HIS HONOUR: So Schedule “B” and 1993 is $1,585.41?

Lamarre T.C.J.:

The appellant appealed from assessments made by the Minister of National Revenue (“the Minister”) pursuant to the Income Tax Act (“the Act”) for the 1988, 1989, 1990 and 1991 taxation years.

At the time the appellant filed his tax returns for each of those years he claimed rental losses for 1988 and 1989 on a building located at 262-264 Rue de la Couronne, in Québec. The losses which he claimed at that time amounted to $60,803 in 1988 and $26,068 in 1989. The Minister disallowed these losses.

Rip T.C.J.:

Beaubier T.C.J.:

This appeal pursuant to the Informal Procedure was heard at Edmonton, Alberta on July 15, 1998. The Appellant was the only witness. The Appellant resides in St. Albert, Alberta and is a personal trainer.

Hamlyn T.C.J.:

These appeals are in respect of the Appellant’s 1991, 1992 and 1993 taxation years.

In computing income for the 1991, 1992 and 1993 taxation years, the Appellant, Elan Development Ltd. (“Elan”), claimed the small business deduction.

In reassessing the Appellant for the 1991, 1992 and 1993 taxation years, the Minister of National Revenue (the “Minister”) disallowed the said deduction.

Facts

At the hearing, the parties filed a Statement of Agreed Facts. It reads:

McArthur T.C.J.:

This is the appeal of David Ciebien from the Minister of National Revenue’s reassessment of the Appellant’s 1990, 1991 and 1992 taxation years. The Appellant sought to deduct the amounts of $50,780, $65,777 and $70,840 — I have dropped the cents — being purported business losses from the operation of two hair salons. The Appellant later revised his claim to $50,942, $101,961 and $95,321 in losses for those years respectively.