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Elizabeth Ann Hooker, on October 30, 1973, signed an offer to purchase real estate in connection with the balance of the land, namely lots 24, 26 and 27 on Wilkes Avenue, and this was handled through W Lamb Realty Limited. ... He was asked whether he remembered talking to representatives of Revenue Canada, in May 1979, in connection with the sale of the perimeter property. ...

Counsel for the Minister agreed that the Board’s decision would only relate to whether or not the alleged “inventory” of leased cars fitted the requirements of the Act on a basis equivalent to the inventory of new and used cars, as portrayed in this case, and this case only. lt was common ground between the parties that no funds of the company relative to the deduction sought had been laid out, nor had any obligation in connection with it been taken on by the company, other than the original purchases of automobiles which would be accounted for in the normal course of events. ... It might well be argued that utilizing paragraph 20(1)(gg) as one would deal with any other calculated allowance in connection with a reserve — deducting it from income one year and bringing it back in the next, if necessary — would support the contention of counsel for the appellant that the allowance is permissible year after year, and it could be in accord with the decision in T Bar B (supra). ...

No expenses in connection with the Camaro were claimed in computing the appellant’s income. 3.09 Two of the invoices filed in support of automobile expenses related to the Camaro: one dated July 21, 1971 and one April 25, 1971. ... Expenses in connection with a snowblower and garage 3.11 The appellant also claimed depreciation on a snowblower used to clear the entrance to a garage he had rented, presumably not far from his residence. ...

Amounts to be included as income from office or employment (1) There shall be included in computing the income of a taxpayer for a taxation year as income from an office or employment such of the following amounts as are applicable: (a) Value of benefits—the value of board, lodging and other benefits of any kind whatever (except the benefit he derives from his employer’s contributions to or under a registered pension fund or plan, group sickness or accident insurance plan, private health services plan, supplementary unemployment benefit plan, deferred profit sharing plan or group term life insurance policy) received or enjoyed by him in the year in respect of, in the course of or by virtue of an office or employment; (b) Personal or living expenses—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 (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 employer 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. 8. ... Definitions (1) In this Act, “Personal or living expenses’’—“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. 4.2. ...

Section 248 of the Act reads as follows: “farming” includes tillage of the soil, livestock raising or exhibiting, maintaining of horses for racing, raising of poultry, fur farming, dairy farming, fruit growing and the keeping of bees, but does not include an office or employment under a person enagaged in the business of farming; “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 of Law The counsel for both parties referred the Board to the following cases of law: 1. ... See also s 139(1)(ae) of the Income Tax Act which includes as “personal and living expenses” and therefore not deductible for tax purposes, the expenses of properties maintained by the taxpayer for his own use and benefit, and not maintained in connection with a business carried on for profit or with a reasonable expectation of profit. ...

By the first Supplementary Letters Patent, the original purposes and objects were expunged and replaced by the following objects: (a) to purchase or otherwise acquire for investment, and to hold for investment, property, real and personal, of every kind and nature, and any estate or interest therein, and to manage and supervise such investment; (b) to buy, sell, manufacture, assemble, install, import, export and otherwise deal in fans, blowers, furnaces, refrigerators, ventilating, air conditioning, cooling and heating equipment for commercial, industrial or domestic use and all kinds of filters, electronic or electrical or other power equipment, motors or devices connected or used in connection therewith. ... Since the lease was a net net net lease, basically all costs in connection with the property, eg flower bed, landscaping, grass cutting, snow removal, painting and major roof repair jobs, were paid for by Greensteel but the supervision of that work was done by Transregent, which supervision was usually by three of the directors of Transregent including Mr Martin. ...

They read as follows: 212.(5) Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to him as, on account or in lieu of payment of, or in satisfaction of, payment for a right in or to the use of (a) a motion picture film, or (b) a film or video tape for use in connection with television that has been or is to be used or reproduced in Canada. 227.(7) Where, upon application by or on behalf of a person to the Minister pursuant to subsection (6) in respect of an amount paid to the Receiver General of Canada that was deducted or withheld under Part XIII, the Minister is not satisfied (a) that the person was not liable to pay any tax under that Part, or (b) that the amount paid to the Receiver General of Canada was in excess of the tax that the person was liable to pay the Minister shall assess that person for any amount payable to him under Part XIII and send a notice of assessment to that person, whereupon Divisions I and J of Part I are applicable mutatis mutandis. 5.2 Cases The parties referred to the following cases: A. ... For a better understanding of the meaning of subsection 212(5) it would be useful to compare the two official texts, in English and French: Subsection 212(5)—English 212.(5) Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to him as, on account or in lieu of payment of, or in satisfaction of, payment for a right in or to the use of (a) a motion picture film, or (b) a film or video tape for use in connection with television that has been or is to be used or reproduced in Canada. ...

The Minister assessed on the assumptions that the disallowed legal expenses were not incurred for the purpose of gaining or producing income from a business or property in accordance with paragraph 18(l)(a) of the Income Tax Act (“Act”) and were not incurred in connection with the appellant’s dry wall business in the normal course of its income earning activities. ... Instead, she was rejecting both the need for a causal connection between a particular expenditure and a particular receipt, and the suggestion that a receipt must arise in the same year as an expenditure is incurred. ...

First, the assumption that the taxpayer “had no reasonable expectation of profit” has sometimes been viewed as an implied if not an express reference to the definition of “personal or living expenses” found in subsection 248(1) of the Act where such expenses are precisely defined as including: (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. ... The second example relates to the use of the van in connection with the sales activities. ...

In so reassessing the Appellant, the Minister made the following assumptions of fact: (a) in 1988, the Appellant and his spouse started an oriental giftware business in equal (%o) partnership under the name ‘Classic Arts & Collectibles’ (the ‘Business’); (b) in 1988, the Appellant leased a store at 734 Queen Street, East, Toronto to operate the Business; (c) the Appellant and his spouse reported gross income of $7,553.04, $3,724.73 and $1,328.34 and gross profit (excess of income over cost of goods sold) of $3,236.94, $1,510.97 and $371.23 in the 1992, 1993 and 1994 taxation years respectively, arising out of the Business carried on by them; (d) the Appellant and his spouse reported expenses of $27,760.83, $21,709.88 and $18,948.88 in the 1992, 1993 and 1994 taxation years, resulting in business losses of $24,523.89, $20,198.91 and $18,577.65 in the 1992, 1993 and 1994 taxation years, of which the Appellant re- ported 81% or $19,921.98, 90% or $18,179.02 and 90% or $16,719.89 in the 1992, 1993 and 1994 taxation years respectively; (e) in reassessing the Appellant for the 1992, 1993 and 1994 taxation years, the Minister reduced the net loss from the Business to the amounts of $17,366.00, $14,939.00 and nil respectively, and allocated 50% or $8,683.00, $7,469.50 and nil respectively to the Appellant and the remaining 50% of the loss from the Business to the Appellant’s spouse; (f) at all material times, the Appellant was in full time employment with Ontario Hydro; (g) the lease for the Queen Street store expired in November 1993 and the Appellant moved the inventory stock to the basement of his residence; (h) after the expiry of the lease for the store, the Appellant did not operate the Business with a reasonable expectation of profit; (i) the Appellant has failed to produce adequate receipts, invoices or other records to support the expenses incurred during the operation of the Business; (j) the Appellant claimed his share of the Business losses in other years as follows: YEAR % LOSSES 1988 50 $21,527.00 1989 50 $19,963.00 1990 50 $18,962.00 199] 50 $28,045.00 1995 50 $ 4,642.00 (k) expenses in excess of the amounts allowed by the Minister were not made or incurred for the purpose of gaining or producing income from a business or property; (l) the disallowed expenses were personal or living expenses of the Appellant; (m) the business expenses reported by the Appellant and his spouse for the 1992, 1993 and 1994 taxation years, included automobile expenses including capital cost allowance in the amounts of $6,692.71, $7,274.81 and $3,270.11, respectively; (n) for the 1992 and 1993 taxation years, the Minister allowed 20% of the automobile expenses claimed including capital cost allowance in the amounts of $1,207.00 and $1,406.00 respectively; (o) the balance of disallowed automobile expenses in the 1992, 1993 and 1994 taxation years represents the Appellant’s personal use portion; (p) the Appellant did not maintain a proper log book in connection with the business use of the automobile. ... (h) the Appellant has failed to produce adequate receipts, invoices or other records to support the expenses incurred during the operation of the Business; (i) the Appellant claimed her share of the Business losses in other years as follows: YEAR % LOSSES 1988 50 $21,527.00 1989 50 $19,963.00 1990 50 $18,962.00 1991 22 $ 7,681.00 1995 10 $ 515.00 (j) expenses in excess of the amounts allowed by the Minister were not made or incurred for the purpose of gaining or producing income from a business or property; (k) the disallowed expenses were personal or living expenses of the Appellant; (l) the business expenses reported by the Appellant and her spouse for the 1992, 1993 and 1994 taxation years, included automobile expenses including capital cost allowance in the amounts of $6,692.71, $7,274.81 and $3,270.11, respectively; (m) for the 1992 and 1993 taxation years, the Minister allowed 20% of the automobile expenses claimed including capital cost allowance in the amounts of $1,207.00 and $1,406.00 respectively; (n) the balance of disallowed automobile expenses in the 1992, 1993 and 1994 taxation years represents the Appellant’s personal use portion; (o) the Appellant did not maintain a proper log book in connection with the business use of the automobile. ...