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This view, as to the intention of the father of the deceased, is formed by the appellants on a consideration of the directions appearing in the tenth clause of the will and of the provisions of the fifth clause of the deed of donation which they seek to interpret and rationalize in a manner consistent with the motives which, in their view, prompted the father of the deceased to so direct and provide. ... VI, c. 14, was determined on consideration of certain provisions thereof which differ, in substance, from their counterparts in the Estate Tax Act (supra). ...

At the time of amalgamation all the issued shares of the Shoe Company were owned by Old United which had acquired them on or about December 30, 1958 for $210,000, which had been raised by the sale of $110,000 of First Mortgage Bonds of Old United and paid in cash and $100,000 of General Mortgage Bonds of Old United which had been delivered to the vendors of the shares as part of the consideration therefor. ... As an alternative submission the appellant also contended, also on the basis of the appellant being a new corporation distinct from the two amalgamating corporations, that for the purpose of determining deductibility of interest under Section 11(1) (c) regard must be had to the use made of the borrowed money in the taxation year under consideration, that in the years under review the money represented by the bond issues of Old United was not invested in property the income from which would be exempt but was invested in the business of the appellant and the interest was therefore deductible. ...

In delivering the judgment of the Court, Mr Justice Pigeon said, commencing at page 880 [266, 6200]: In my view, the decisive consideration in favour of the Minister's decision is that the MacLean orebody was not developed as a separate mine. ... </p>] 30 Similarly, the drainage outlet for excess water has to be considered as a necessary and integral part of any mining operation. 31 I turn now to a consideration of the Bethlehem case as it may apply to the facts in this case. ...

Winckworth (1933), 17 TC 569at 572, in which Finlay, J said: There is no room, of course, in a taxing Act for equitable considerations... ... This case followed the decision in Re Kemp (supra) and, while the editorial note points out that presumably because the point was not raised for consideration, the Court omitted to pass upon the question of whether the payment of part of the widow's income tax by the executors constituted additional taxable income to her, this proposition is not new to Canadian tax law. ...

Generally speaking, a decision that such a motivation exists will have to be based on inferences flowing from circumstances surrounding the transaction rather than on direct evidence of what the purchaser had in mind. 15 Chief Justice Jackett, in the case of Pine Ridge Property Ltd v Minister of National Revenue, [1973] C.T.C. 201, expressed the view that the relevant facts as at time of purchase, subsequent events and the affirmations of the company's shareholders, should all be taken into consideration in deciding whether the sole motivation at the date of acquisition was the creation and retention of a capital asset. 16 In this case, the evidence clearly establishes that Peter Vida was the “mind” of the plaintiff corporation at all relevant times. ... At 585 [5391–2] of that judgment, Addy, J said: All issues must be determined by a careful consideration of all of the relevant evidence both direct and circumstantial. ...

.), c.1) 9. (1) Subject to this Part, a taxpayer's income for a taxation year from a business or property is his profit therefrom for the year. 18. (1) In computing the income of a taxpayer from a business or property no deduction shall be made in respect of (a) 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; (9) Notwithstanding any other provision of this Act, (a) in computing a taxpayer's income for a taxation year from a business or property (other than income from a business computed in accordance with the method authorized by subsection 28(1)), no deduction shall be made in respect of an outlay or expense to the extent that it can reasonably be regarded as having been made or incurred (i) as consideration for services to be rendered after the end of the year, (ii) as, on account or in lieu of payment of, or in satisfaction of, interest, taxes..., rent or royalty in respect of a period after the end of the year, or (iii) as consideration for insurance in respect of a period after the end of the year....; (b) such portion of each outlay or expense made or incurred as would, but for paragraph (a), have been deductible in computing a taxpayer's income for a taxation year shall be deductible in computing his income for the subsequent year to which it can reasonably be considered to relate;... ...

Exhibit R-5 is headed “Full and Final Release” and states in part: IN CONSIDERATION of the payment of the sum of NINETEEN THOUSAND SIXTY THREE DOLLARS AND TWENTY EIGHT CENTS ($19,063.28) inclusive of costs which is directed to my solicitors, Cockburn, Foster, Townsend, Graham & Associates, In Trust. ... AND IT IS HEREBY DECLARED that the terms of this settlement are fully understood, that the amount stated herein is the sole consideration for this release and that the said sum is accepted voluntarily for the purpose of making a full and final compromise, adjustment and settlement of all claims for injuries, losses and damages resulting or to result from the said accident. 8 The final document signed by the Appellant is entitled a “Release, Direction and Authorization” (Exhibit R-6). ...

</p>] where Rand J. defined interest broadly to include “the return or consideration or compensation for the use or retention by one person of a sum of money, belonging to, in a colloquial sense, or owed to another” This fairly broad definition has since been limited or more narrowly defined. ... </p>] It is further covenanted and agreed, in and for the consideration aforesaid, as a condition hereof, that until the said principal sum with interest thereon is fully paid as aforesaid, if the total gross annual income accruing to the mortgagor in any calendar year during the continuance of this mortgage from the said lands and buildings thereon or other facilities now on or which may hereafter be erected or be situated on the said lands, shall exceed the sum of $135,000,00 during any such calendar year... then the said mortgagor will pay to the mortgagees, within 121 days after the end of each calendar year, a sum equal to 10% of the amount by which the said total gross annual income shall exceed the said sum of $135,000.00, any such percentage payment to be in addition to the payments of interest and principal hereinafter contained... ...

.), at page 5157: While it has frequently been held that a Court should not, after considering all the expert and other evidence, merely adopt a figure somewhere between the figure sought by the contending parties, it has also been held that the Court may, when it does not find the evidence of any expert completely satisfying or conclusive, nor any comparable especially apt, form its own opinion of valuation, provided this is always based on the careful consideration of all the conflicting evidence. ... </em>(1996), 96 D.T.C. 1594 (T.C.C.), in which Judge Mogan voiced concerns regarding the reliability of the Appellants' experts after questioning their valuation methods and noting that they failed to take into account certain pertinent considerations and some conflicts of interest. ...

Counsel contended that it was clear from the evidence that those lots had been purchased in order to be resold at a profit or at least that one of the appellant's considerations at the time the lots were acquired was the possibility of reselling them at a profit. 14 As mentioned above, the point at issue is whether the profit realized on disposition of the lot in Boucherville must be characterized as a capital gain or as business income. 15 The Income Tax Act (the “Act”) defines “business” in section 248 as follows: “business” includes a profession, calling, trade, manufacture or undertaking of any kind whatever and, except for the purposes of paragraph 18(2)(c), an adventure or concern in the nature of trade but does not include an office or employment; 16 In order to characterize the transaction as an adventure in the nature of trade, it is important to verify what the taxpayer's intention was at the time of the acquisition of the property that gave rise to the profit and to analyze the facts and circumstances surrounding the transaction in order to determine the true intention.Furthermore, it is not sufficient to verify the primary intention; it must also be determined whether there was a secondary intention at the time of acquisition. ... The considerations prompting the transaction may be of such a business nature as to invest it with the character of an adventure in the nature of trade even without any intention of making a profit on the sale of the purchased commodity. 20 However, this will not necessarily be the case if the evidence shows that the purchaser's intention at the time of acquisition was not to resell the land at a profit and that there were other motivations for engaging in such a transaction. ...