Search - connection

In this connection, regard must be had to section 11 of the Act and the pertinent section of the Regulations. ...

He had not actually handled any money and received no T5 slips in connection with the matter. ...

In assessing tax as aforesaid, the Respondent acted upon the following findings or assumptions of fact: (a) The Appellant purchased 16.46 acres of farm property in Milton, Ontario in February, 1971 and converted it from a chicken farm to a farm for the boarding of horses; (b) the property was purchased by the Ontario Government in June, 1976 and thereafter the Appellant rented the property from the Ontario Government; (c) in the 1976 and 1977 taxation years, no revenues from the boarding of horses were reported as the boarding operation was not functional; (d) at all material times, the Appellant was not carrying on a farming business; (e) the expenses incurred by the Appellant in relation to his farming activities constituted expenses of property maintained by the Appellant or any person connected 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; (f) the expenses incurred by the Appellant in relation to his farming activities were personal or living expenses of the Appellant. 3. ... They read as follows: DEDUCTIONS Sec 18 General limitations (1) In computing the income of a taxpayer from a business or property no deduction shall be made in respect of Subsec 18(1)(a) (a) General limitation. — an outlay or expense except to the extent that it was made or incurred by the taxpayer for the purpose of gaining or producing income from the business or property; Subsec 18(1) (h) (h) Personal or living expenses. — 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; Ssec 248 Definitions (1) In this Act, “Farming” — “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 engaged in the business of farming; “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; 4.02 Cases at Law Counsel for the respondent referred the Board to the following cases: 1. ...

The appellant worked on engineering problems in connection with the cranes and he prepared reports and instruction manuals that related to the use of the machines. ... I am not satisfied that the expenditures in connection with the home office were laid out for the purpose of gaining or producing income from the appellant’s business. ...

In the year 1973, in connection with a real estate development project of Wenfair Developments Ltd (“Wenfair”) in Belleville, Ontario, the appellant guaranteed some of Wenfair’s financial obligations with the Canadian Imperial Bank of Commerce (CIBC). ... The appellant, in fact, did the architectural work, acted as the CMHC liaison, obtained building permits, supervised the construction and undertook various other related activities in connection with the project In the spring of 1973, it became apparent that the project was in serious financial difficulties which were compounded when the third mortgagee failed to advance funds which he committed for the project. ...

Act—Case Law—Comments 4.1 Act The principal sections involved in the case at bar are paragraph 8(1)(h) and subparagraph 6(1)(b)(vii), which is referred to in paragraph 8(1)(h) These two provisions are as follows: 8.(1) In computing a taxpayer’s income for a taxation year from an office or employment, there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto: (h) where the taxpayer, in the year, (i) was ordinarily required to carry on the duties of the employment away from his employer’s place of business or in different places, (ii) under the contract of employment was required to pay the travelling expenses incurred by him in the performance of the duties of his office or employment, and (iii) was not in receipt of an allowance for travelling expenses that was, by virtue of subparagraph 6(1)(b)(v), (vi) or (vii), not included in computing his income and did not claim any deduction for the year under paragraph (e), (f) or 9), amounts expended by him in the year for travelling in the course of his employment; 6.(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: (b) 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 (v) reasonable allowances for travelling expenses received by an employee from his employer in respect of a period when he was employed in connection with the selling of property or negotiating of contracts for his employer, (vi) reasonable allowances received by a minister or clergyman in charge of or ministering to a diocese, parish or congregation for expenses for transportation incident to the discharge of the duties of his office or employment, (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 empoyee 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. 4.2 Case Law The case law cited by the respondent is the following: 1. ...

He let the property to tenants for about a year and then sold it in connection with the acquisition of another property, a rental property. ... It should not be forgotten that the activities in connection with both properties are closely associated with the appellant’s ordinary occupation as a real estate salesman. ...

The sole issue in this appeal from the assessment of income tax for the 1976 taxation year is whether the sum of $110,000, being the value of the BP shares turned over by the appellant, and the sum of $3,709, incurred in legal costs in connection with the law suit, are expenditures on revenue account or capital account. ... The established connection between BP and those of its clients previously served by the appellant was not divided or even shared. ...

The appellant held 75% interest in this business and his wife 25%. 3.02 In connection with the said business the appellant partially owned standardbred stallions known as Lang Hanover and High Level. 3.03 Lang Hanover was purchased by the appellant at a cost of $3,797. ... They read as follows: 28.(1) For the purpose of computing the income of a taxpayer for a taxation year from a farming business, the income from the business for that year may, if the taxpayer so elects, be computed in accordance with a method (in this section referred to as the “cash” method) whereby the income therefrom for that year shall be deemed to be an amount equal to the aggregate of (b) such amount, if any, as may be specified by the taxpayer in respect of the business in his return of income under this Part for the year, not exceeding the fair market value at the end of the year of livestock (other than animals included in the basic herd within the meaning assigned by section 29) owned by him at that time in connection with the business. 29.(3) For the purposes of this section, (a) a taxpayer’s “basic herd” of any class of animals at a particular time means such number of the animals of that class that the taxpayer had on hand at the end of his 1971 taxation year as were, for the purpose of assessing his tax under this Part for that year, accepted by the Minister, as a consequence of an application made by the taxpayer, to be capital properties and not to be stock-in- trade, minus the numbers, if any, required by virtue of this section to be deducted in computing his basic herd of that class at the end of taxation years of the taxpayer ending before the particular time; 1702.(1) Nothing in this Part shall be construed as allowing a deduction in respect of a property (f) that is (i) an animal, or Schedule B—Class 8—Property not included in Class 2, 7, 9 or 30 that is (d) a tangible capital asset that is not included in another class in this Schedule except (ii) an animal, 248.(1) In this Act, “Farming”. ...

—where the taxpayer was employed in the year in connection with the selling of property or negotiating of contracts for his employer, and (i) under the contract of employment was required to pay his own expenses, (ii) was ordinarily required to carry on the duties of his employment away from his employer’s place of business, (iii) was remunerated in whole or part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated, and (iv) was not in receipt of an allowance for travelling expenses in respect of the taxation year that was, by virtue of subparagraph 6(1)(b)(v), not included in computing his income, amounts expended by him in the year for the purpose of earning the income from the employment (not exceeding the commissions or other similar amounts fixed as aforesaid received by him in the year) to the extent that such amounts were not (v) outlays, losses or replacements of capital or payments on account of capital, except as described in paragraph (j), or (vi) outlays or expenses that would, by virtue of paragraph 18(1)(i), not be deductible in computing the taxpayer’s income for the year if the employment were a business carried on by him; 8(1)(i) Dues and other expenses of performing duties. ... According to the evidence presented, all these expenses were in connection with the office the appellant had at her residence (stationery was supplied by her employer). ...