The Chairman:—The appeal of Mr John West is from income tax assessments in respect of the 1971, 1972, 1973, 1974 and 1975 taxation years whereby the Minister, along with interests on tax payable and penalties for late filing, imposed penalties pursuant

Guy Tremblay:— These three cases were heard in Vancouver, British Columbia, on February 23,1979. They were heard together pursuant to an order dated December 28, 1978, in the application of section 174 of the Income Tax Act.

D E Taylor:—This is an appeal heard in the City of Victoria, British Columbia, on January 21, 1980 against an income tax assessment for the year 1974 in which the Minister of National Revenue assessed to capital gains tax part of the

D E Taylor:—This is the appeal of Frank E Smith with respect to the 1975, 1976 and 1977 taxation years.

The Chairman:—This is the appeal of Mr J Vincent Toolsie from income tax assessments in respect to the 1973, 1974 and 1975 taxation years.

The Chairman:—This is an appeal of Mr Ralph Brady from income tax assessments in respect of the 1969, 1970, 1971, 1972 and 1973 taxation years.

The Chairman [TRANSLATION]:—This is an appeal by Mr Paolo Violi against tax assessments for the 1971, 1972, 1973 and 1974 taxation years.

The Assistant Chairman:—Once again, as in many other appeals, the question as to whether or not the income of a corporation for the year is “from an active business’’ is the issue in this appeal. If the income in question is from an

M J Bonner:—I will now give the reasons for my decision in the Valani appeals.

The Chairman:—This is the appeal of Mr Arthur Ballantyne from income tax assessments in respect to the 1974 and 1975 taxation years, by which the Minister in adjusting the appellant’s reported income added a taxable capital gain of $7,710.75 for 1974