Bowie T.C.J.:

1 These four appeals, which were heard together on common evidence, arise out of the purchase and subsequent resale of a parcel of land of 40 acres in Halton Hills, in the province of Ontario. The purchase was made by a group of six people, or at least so it appears from the deed of purchase, for the purpose of building family homes. For reasons that I will come to in a moment, that intention failed, and the land was sold some eight years later at a substantial profit.

Iacobucci J.:

Lamarre T.C.J.:

Rowe T.C.J.:

Strayer J.A.:

Rip T.C.J.:

Bowman T.C.J.:

Teskey T.C.J. (orally):

1 HIS HONOUR: The Appellant in his Notice of Appeal wherein he appealed the assessment of income tax for the years 1989, 1990, 1991, 1992 and 1993 elected the informal procedure. The only issue that the Appellant raised at the hearing was whether the Notices of Assessment were effective or not. He made no attempt to challenge the validity of the assessments for the years in question. I can only assume that he had no valid argument against the assessments.

Margeson T.C.J.:

1 At the commencement of the trial, counsel advised the Court that two out of three issues had been resolved and a consent to judgment was filed with regard to these issues.

2 The only outstanding issue is whether or not the Appellant was entitled to deduct interest expenses of $83,532 in the year 1989 in computing its income for that year.

Rip T.C.J.:

1 George Green (“appellant”) appeals from income tax assessments for the 1990, 1991 and 1992 taxation years on the basis that since incurred expenses for the purpose of gaining or producing income from a rental property he is not prohibited from deducting the expenses in computing income: paragraph 18(1)(a) of the Income Tax. Act (“Act”).