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Maria Greatti was aware that her father worked with Giannunzio in connection with real estate but she was not too familiar with the precise way they purchased and sold real estate. ...

These provisions read as follows: 18. (1) In computing the income of a taxpayer from a business or property no deduction shall be made in respect of (h) personal or living expenses of the taxpayer except travelling expenses (including the entire amount expended for meals and lodging) incurred by the taxpayer while away from home in the course of carrying on his business; 31. (1) Where a taxpayer’s chief source of income for a taxation year is neither farming nor a combination of farming and some other source of income, for the purposes of sections 3 and 111 his loss, if any, for the year from all farming businesses carried on by him shall be deemed to be the aggregate of (a) the lesser of (i) the amount by which the aggregate of his losses for the year, determined without reference to this section and before making any deductions in respect of expenditures described in section 37, from all farming businesses carried on by him exceeds the aggregate of his incomes for the year, so determined from all such businesses, and (ii) $2,500 plus the lesser of (A) /2 of the amount by which the amount determined under subparagraph (i) exceeds $2,500, and (B) $2,500, and (b) the amount, if any, by which (i) the amount that would be determined under subparagraph (a)(i) if it were read as though the words “and before making any deductions in respect of expenditures described in section 37” were deleted, exceeds (ii) the amount determined under subparagraph (a)(i); and for the purposes of this Act the amount, if any, by which the amount determined under subparagraph (a)(i) exceeds the amount determined under subparagraph (a)(ii) is the taxpayer’s “restricted farm loss” for the year. 248. (1) In this Act, “personal or living expenses” includes (a) the expenses of properties maintained by any person for the use or benefit of the taxpayer or any person connected with the taxpayer by blood relationship, marriage or adoption, and not maintained in connection with a business carried on for profit or with a reasonable expectation of profit, (b) the expenses, premiums or other costs of a policy of insurance, annuity contract or other like contract if the proceeds of the policy or contract are payable to or for the benefit of the taxpayer or a person connected with him by blood relationship, marriage or adoption, and (c) expenses of properties maintained by an estate or trust for the benefit of the taxpayer as one of the beneficiaries; 4.02 Cases at Law The counsel for both parties referred the Court to the following cases at law: 1. ...

In December 1980 the taxpayer travelled abroad twice in connection with his mother’s illness, returning to Canada from the last trip in late December 1980. ...

There is no such requirement on the Minister in this matter to make the direct connection btween the loan and the shareholder; it is accomplished automatically by virtue of the provisions of subsection 15(2) of the Act under which the Thompsons have already sheltered the loan itself from consequent inclusion in income. ...

Evidence The document referenced above in connection with Item (1) as “(See attached Exhibit ‘A’)” was provided to the Board. ...

Goodwill is the “benefit and advantage of the good name, reputation and connection to a business. ...

. — all amounts received by him in the year as an allowance for personal or living expenses or as an allowance for any other purpose, except (i) travelling or personal or living expense allowances (A) expressly fixed in an Act of the Parliament of Canada, or (B) paid under the authority of the Treasury Board to a person who was appointed or whose services were engaged pursuant to the Inquiries Act, in respect of the discharge of his duties relating to such appointment or engagement, (vii) allowances (not in excess of reasonable amounts) for travelling expenses received by an employee (other than an employee employed in connection with the selling of property or negotiating of contracts for his employer) from his employee if they were computed by reference to time actually spent by the employee travelling away from (A) the municipality where the employer’s establishment at which the employee ordinarily worked or to which he ordinarily made his reports was located, and (B) the metropolitan area, if there is one, where that establishment was located, in the performance of the duties of his office or employment, (3) Payments by employer to employee. ...

Subsection 178(2) provides that if the Minister appeals, otherwise than by cross-appeal, from a decision of the Tax Review Board where the amount of the “tax” in controversy is less than $2500.00 the Federal Court shall order the Minister “to pay all reasonable and proper costs of the taxpayer in connection therewith.” ...

—“personal or living expenses” includes (a) the expenses of properties maintained by any person for the use or benefit of the taxpayer or any person connected with the taxpayer by blood relationship, marriage or adoption, and not maintained in connection with a business carried on for profit or with a reasonable expectation of profit, (b) the expenses, premiums or other costs of a policy of insurance, annuity contract or other like contract if the proceeds of the policy or contract are payable to or for the benefit of the taxpayer or a person connected with him by blood relationship, marriage or adoption, and (c) expenses of properties maintained by an estate or trust for the benefit of the taxpayer as one of the beneficiaries; 4.02 Case Law The case law to which the parties referred are: Donald J Gillis v HMQ, [1978] CTC 44; 78 DTC 6103; Ernest Radies v MNR, [1978] CTC 2601; 78 DTC 1448; William Moldown v HMQ, [1977] CTC 310; 77 DTC 5213; CBA Engineering Limited v MNR, [1971] CTC 504; 71 DTC 5282; Donald A Holley v MNR, [1973] CTC 539; 73 DTC 5417. 4.03 Analysis 4.03.1 In the Moldowan case, Mr Justice Dickson of the Supreme Court of Canada, said: There is a vast case literature on what reasonable expectation of profit means and it is by no means entirely consistent. ...

In this connection, I would make reference to the case of Columbia Enterprises Ltd v MNR, [1978] CTC 3082; 78 DTC 1783 as upheld on appeal, [1981] CTC 180; 81 DTC 5133. ...