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The following criteria should be considered: the profit and loss experience in past years, the taxpayer’s training, the taxpayer’s intended course of action, the capability of the venture as capitalized to show a profit after charging Capital cost allowance. ... The difference can be minimal. 4.03.3 According to the cases at law referred to by the parties, the different items to be considered are, inter alia, experience in farming, time spent, intent, capital committed and profitability both actual and potential. 4.03.4 Items analysed (a) Experience in farming The evidence concerning the item (para 3.10) is not in favour of the appellant. ...

Mrs Pauline Bouchard, considered as an impartial witness (because she was then estranged from her husband, the appellant’s son), confirmed that an agreement existed in 1963 whereby the appellant would purchase the property and sell it to his son at the cost price when the couple could afford it. ... I am not prepared to accept that the appellant’s undertaking to sell the property at the original cost price to his son can now be considered in retrospect as having been the appellant’s intention to create a trust for his son at the time he acquired the property in 1963. ...

Part of this document shows “LOSS FOR INCOME TAX PURPOSES” for the following years: 1973 1974 1975 1976 1977 1978 1979 1980 $ $ $ $ $ $ $ $ 2,500 21,771 28,699 19,632 20,126 22,789 26,925 7,566 He inserts as an “Add Back” item “LOSS (INCOME) FOR ACCOUNTING PURPOSES’ with the following figures: 1973 1974 1975 1976 1977 1978 1979 1980 $ $ $ $ $ $ $ $ (2,024) (2,494) 4,838 27,077 14,118 6,878 24,956 2,749 He shows a combined income from the appellant’s employment with his companies, S & M Pizza Ltd and Schaeffer Rentals as follows: 1973 1974 1975 1976 1977 1978 1979 $ $ $ $ $ $ $ 39,804 37,091 50,484 56,222 20,759 37,192 17,900 He indicated that his “Add back” represented an unrealistic capital cost allowance which he considered “far in excess of actual physical depreciation” and as an illustration pointed out the 1975 taxation year wherein there was a tax loss of $28,699 but was really a mere accounting loss of $4,838. ... I have considered the cases submitted to me by the appellant: MNR v B A Robertson, [1954] CTC 110; 54 DTC 1062; Bert James v MNR, [1973] CTC 457; 73 DTC 5333; O. ...

The term “long service” is usually considered to have reference to the total number of years in an employee’s career with a particular employer. ... On the other hand, when an employee terminates employment and a payment is made in respect of accumulated vacation leave not taken prior to the retirement, this payment is considered to be ordinary remuneration and included in the employee’s income in the year of receipt pursuant to subsection 6(3). 4.03.5 Respondent’s interpretation The respondent referred to the Gerald Molleur v MNR case given in 1965 by Dumoulin, J of the then Exchequer Court of Canada. ...

The items and the amounts in issue in these appeals can be summarized as follows: 1973 Expenses Claimed Allowed Disallowed Automobile $3,693.34 $3,165.89 $ 527.45 Public Phone 260.00 100.00 160.00 Office in Home 903-85 47-26 06-59 Entertainment 3,808.76 1,999.15 1,809.61 Interest Expenses Claimed Allowed Disallowed Canadian Imperial Bank of Commerce 1,881.37 0 1,881.37 Carrying Charges Claimed Allowed Disallowed Toronto Dominion Bank $1,019.00 0 $1,019.00 John Harris Farms 1,500.00 0 1,500.00 Flying Dutchman Motel 500.00 0 500.00 Travel Expenses Hawaii 3,223.54 0 3,223.54 Grubstaking expenses 3,245.84 0 3,245.84 1974 Expenses Claimed Allowed Disallowed Automobile $3,272.19 $2,843.62 $ 428.57 Public Phone 260.00 100.00 160.00 Office in Home-840774 923-44 603-70 Entertainment 3,096.85 2,315.18 781.67 Interest Expenses Claimed Allowed Disallowed Canadian Imperial Bank of Commerce 2,289.94 0 2,289.94 Carrying Charges Claimed Allowed Disallowed Toronto Dominion Bank $3,178.87 0 $3,178.87 John Harris Farms 4,000.00 0 4,000.00 Flying Dutchman Motel 500.00 0 500.00 Travel Expenses Grenada 624.58 0 624.58 Grubstaking mining expenses 18,149.95 0 18,149.95 Counsel for the respondent conceded that, based on evidence presented, an expenditure of $260 for pay-phone for each of the 1973 and 1974 taxation years might possibly be considered as a reasonable business expense. ... Invoices for items such as groceries, films, sport shirts and a dress are to be found in Exhibit R-1, none of which can, under the circumstances, be considered as business expenses. ...

Before the end of the year, they are considered as “Current Assets”. 3.12 Mr Paul St-Martin, assistant sheriff for the judicial district of Montreal, testified for the respondent. ... If, after considering all these matters, the Court concludes that the possibility of turning the property to account for profit in any way which might present itself as convenient or expedient, including re-sale, was a major motivating factor, or that an investment intention was not the only motivating factor at time of acquisition, then the Court must find any profit ensuing from a resulting sale to be taxable as an adventure in the nature of trade. in Pine Ridge Property Ltd v MNR, supra at 201: Where the relevant facts as of the time of the purchase are considered together with the subsequent events and the affirmations of the appellant’s shareholders, it is not realistic to conclude that the only possibility that motivated the acquisition was the ultimate creation and retention of a very substantial housing development. ...

There have been three cases in this Court in which somewhat similar problems have been considered. ... What must be considered is the taxpayer’s right in them alone for they alone are within the classes of Schedule B. ...

Sections 56.1 and 60.1 had no application and, accordingly, were not considered by the Federal Court of Appeal. ... If, in this case, section 60.1 and section 56.1 are put aside, and only paragraph 60(b) is considered, then the amounts paid by the defendant Bryce for the benefit of his wife would not be deductible. ...

The appellant company, in order to retain its franchise, became interested in purchasing a Shell Oil service station situated across the street from the plaza and which Colonel Sanders considered as an appropriate site for an outlet location. ... The appellant company’s second position is that the property was acquired as a trading asset and the loss incurred in demolishing the building after it was found that it could not be sold should be considered as a deductible loss of income. ...

This rate is considered to cover the total expenses of operating the car (other than parking) including full insurance coverage. ... I would also conclude from the sentence “None of the above allowances are included in income as reported on the T4 slip” from Appendix “A” (supra) that Clarkson also considered it adequate—and probably a remuneration—in the light of Interpretation Bulletin IT-272. ...