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However, notwithstanding other considerations that have been introduced, the point of law at issue is simply whether all of the interest payments made by the appellant in 1967, 1968 and 1969 in respect of an amount of $17,500,000 allegedly borrowed are deductible pursuant to paragraph 11(1)(c) of the Act, or whether we are faced here with artificial transactions or shams as claimed by counsel for the respondent. ...

The only operation left for the years under consideration was the preparation of financial statements to file income tax returns which per se do not prove that the company was carrying on business in those years. ...

In comparing the value of a farm property declared in an estate tax return with the sale price of a so-called “comparable” property, there are — from my experience in this appeal — a great many factors which vary from property to property and which have to be taken into consideration, such as, to mention some which come to mind: the year in which the sale took place; market prices for farm products in that year; size of property, usually /4 or /2 section; with buildings or no buildings; general location of property; soil conditions; weed problems, especially quack grass; previous crop records; drainage problems; water supply; top soil deficiency; number of acres under cultivation; number of acres unbroken; financing charges and interest rates; acreage in summer fallow; acreage in crops; time of year of sale; suitability of soil only for special crops, and so on and on. ...

Evidence does show that the appellant did not make any effort to sell its surplus land but evidence also shows that the appellant’s prime consideration and preoccupation have always been the operation, the promotion and the expansion of its trucking business. ...

Moreover, the professional who was on the accrual method is not as free as he was before to choose on which day an account becomes an account receivable. 8 In order to accomplish the transition from the 1971 system, where accounts receivable and accounts payable were not taken into income, to the 1972 system where the said accounts were taken into consideration to compute income, transitional rules are necessary and consequently Income Tax Application Rule 23 was enacted of which subsections (1) and (2) state as follows: 23. (1) There may be deducted in computing a taxpayer's income for the 1972 taxation year from a business that is a profession the aggregate of amounts payable by him in respect of the business at the end of the 1971 fiscal period of the business, to the extent that they were not deductible in computing his income from the business for that year but would have been so deductible if he had paid them in that year. (2) Where a taxpayer has not elected under paragraph 34(1)(d) of the amended Act in respect of his income from a business that is a profession for his 1972 taxation year, work in progress in respect of the business at the commencement of the 1972 fiscal period of the business shall be valued at the same amount at which it was valued at the end of the 1971 fiscal period of the business for the purpose of computing his income from that business for the 1971 taxation year. 9 Subsection (1) of ITAR 23 allowed a professional who was under the cash method to deduct the expenses payable at the end of 1971 to the extent that they were not deductible in computing his income from the business for that year (as the case may be for the taxpayer who was on the accrual method) but would have been deductible if he had paid them in that year (as the case may be for the taxpayer who was on the cash method). 10 On the other hand subsection 23(2) of ITAR deals with work in progress. ...

The Board must decide whether it must take into consideration the loss of documents due to the flood in 1973, should the appellant’s evidence prove to be inadequate. 5.2. ...

(c) A critical consideration of the reasons advanced for the eventual abandonment or the frustration of the stated intention. ...

The answer, it seems to me, is that an employee of the Department of National Revenue can in principle be accepted as an expert witness and the Board, as with any other expert witness, will decide what it considers to be the fair market value after studying the evaluation report (or reports) on its (or their) merits and after taking into consideration all other factors and circumstances that were brought into evidence. ...

This retrocession was made in consideration of the full and final release by the assignees (Les Entreprises Marcal Inc and the appellant) made to Im-Val Inc for the amount of $78.000 plus interest then owing to the assignees. 3.5 Les Entreprises Marcal Inc, incorporated in 1963, had as its object the purchase and sale of real estate. ...

In January 1973, the appellant, through its solicitors, made a further proposition by withdrawing its original application and submitting a new application whereby JIC Deveolpments Limited would convey two acres of park land without consideration and two acres of school land less than market value if the remaining land would be rezoned for the construction of townhouses. ...