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The more closely a taxpayer’s business or occupation is related to real estate transactions, the more likely it is that the income will be considered business income rather than capital gain. ... There may be a suggestion that Lot B-2 should be considered as the property in question; however, as Mr. ... Leonard considered that the Deficiency Judgment was not of any value (ibid, p. 85, lines 6-8). ...

The use of the word “raisonnables” in the French version of the provision supports this interpretation. [38] The use of a reasonableness requirement in tax legislation has been considered in other contexts. ... In fact, the Appellant’s witnesses explained in some detail why they are of the opinion that over 10% of the fuel was consumed directly or indirectly in the provision of the Vessels’ commercial activities. [288] I have also considered the evidence given by Mr. ... If this argument were accepted, then all of the payroll department’s activities would be considered to have occurred in the course of the registrant’s commercial activity. ...

Birnie   Counsel for the Respondent: Robert Carvalho____________________________________________________________________   ORDER AND DETERMINATION OF LAW                     Having heard the parties and considered the authorities provided, the Determination of law requested is as follows:   1.      ...

Analysis Concept of tax shelter   [5]              The term  “tax shelter” is defined as follows in section 237.1 of the Act: [1]  “tax shelter” means (a) a gifting arrangement described by paragraph (b) of the definition “gifting arrangement”; and (b) a gifting arrangement described by paragraph (a) of the definition “gifting arrangement”, or a property (including any right to income) other than a flow-through share or a prescribed property, in respect of which it can reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the gifting arrangement or the property, that, if a person were to enter into the gifting arrangement or acquire an interest in the property, at the end of a particular taxation year that ends within four years after the day on which the gifting arrangement is entered into or the interest is acquired,  (i) the total of all amounts each of which is (A) an amount, or a loss in the case of a partnership interest, represented to be deductible in computing the person’s income for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property (including, if the property is a right to income, an amount or loss in respect of that right that is stated or represented to be so deductible), or (B) any other amount stated or represented to be deemed under this Act to be paid on account of the person’s tax payable, or to be deductible in computing the person’s income, taxable income or tax payable under this Act, for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property, other than an amount so stated or represented that is included in computing a loss described in clause (A), would equal or exceed (ii) the amount, if any, by which (A) the cost to the person of the property acquired under the gifting arrangement, or of the interest in the property at the end of the particular year, determined without reference to section 143.2,      would exceed (B) the total of all amounts each of which is the amount of any prescribed benefit that is expected to be received or enjoyed, directly or indirectly, in respect of the property acquired under the gifting arrangement, or of the interest in the property, by the person or another person with whom the person does not deal at arm’s length. ...

  (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:   …   (c) where, in the year, the taxpayer   (i) is a member of the clergy or of a religious order or a regular minister of a religious denomination, and   (ii) is   (A) in charge of a diocese, parish or congregation,   (B) ministering to a diocese, parish or congregation, or   (C) engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination,   the amount, not exceeding the taxpayer's remuneration for the year from the office or employment, equal to   (iii) the total of all amounts including amounts in respect of utilities, included in computing the taxpayer's income for the year under section 6 in respect of the residence or other living accommodation occupied by the taxpayer in the course of, or because of, the taxpayer's office or employment as such a member or minister so in charge of or ministering to a diocese, parish or congregation, or so engaged in such administrative service, or   (iv) rent and utilities paid by the taxpayer for the taxpayer's principal place of residence (or other principal living accommodation), ordinarily occupied during the year by the taxpayer, or the fair rental value of such a residence (or other living accommodation), including utilities, owned by the taxpayer or the taxpayer's spouse or common-law partner, not exceeding the lesser of   (A) the greater of   (I) $1,000 multiplied by the number of months (to a maximum of ten) in the year, during which the taxpayer is a person described in subparagraphs (i) and (ii), and   (II) one-third of the taxpayer's remuneration for the year from the office or employment, and   (B) the amount, if any, by which   (I) the rent paid or the fair rental value of the residence or living accommodation, including utilities   exceeds   (II) the total of all amounts each of which is an amount deducted, in connection with the same accommodation or residence, in computing an individual's income for the year from an office or employment or from a business (other than an amount deducted under this paragraph by the taxpayer), to the extent that the amount can reasonably be considered to relate to the period, or a portion of the period, in respect of which an amount is claimed by the taxpayer under this paragraph;   [5]               It is the position of the Appellant that, in this case, she has the right to choose whether to claim a deduction under subparagraph (iii) or subparagraph (iv) of paragraph 8(1)(c) of the Act ...

Instead, they will be compared to the actions of the reasonably prudent person in similar circumstances. [29]         Can the Appellant’s actions in these circumstances be considered to be those that a reasonably prudent person would engage in if placed in this situation? ...

The Queen, 2005 FCA 252, 2005 DTC 5397:     [28]  A fraudulent scheme from beginning to end or a sting operation, if that be the case, cannot give rise to a source of income from the victim’s point of view and hence cannot be considered as a business under any definition. […]   [32]          Although this comment refers to a victim of fraud, c ounsel suggests that the comment applies to the appellant since she was an unknowing participant in a fraud ...

Analysis The matter of the deductibility of the subject debts could first be considered in light of the provisions of paragraph 20(1)(p) of the Act as they read at the material times: 20 (1) Notwithstanding paragraphs 18(1)(a), (b) and (h), in computing a taxpayer's income for a taxation year from a business or property, 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: (p) the aggregate of debts owing to the taxpayer (i) that are established by him to have become bad debts in that year, and (ii) that have (except in the case of debts arising from loans made in the ordinary course of business by a taxpayer part of whose ordinary business was the lending of money) been included in computing his income for the year or a previous year. ...

The appellant attacks the assessment in a number of ways which I will list because they must be considered separately. ...

., 90 D.T.C. 6312 (F.C.A.). 23 Halliburton and Nowsco considered the form of contract entered into between the taxpayer and customer to be irrelevant.  ...