Date: 19990427
Docket: A-193-94
CORAM: DÉCARY J.A.
ROBERTSON J.A.
SEXTON J.A.
IN RE: The Income Tax Act
BETWEEN:
ARTHUR V. CAREW
(A & A ENTERPRISES)
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
------------------------------------------
A-194-94
IN RE: The Income Tax Act
BETWEEN:
ALFRED S. CAREW
(A & A ENTERPRISES)
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
Heard at Ottawa, Ontario, on Tuesday, April 27, 1999
Judgment delivered from the Bench at Ottawa, Ontario, on Tuesday, April 27, 1999
REASONS FOR JUDGMENT BY: ROBERTSON J.A.
Date: 19990427
Docket: A-193-94
CORAM: DÉCARY J.A.
ROBERTSON J.A.
SEXTON J.A.
IN RE: The Income Tax Act
BETWEEN:
ARTHUR V. CAREW
(A & A ENTERPRISES)
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
------------------------------------------
A-194-94
IN RE: The Income Tax Act
BETWEEN:
ALFRED S. CAREW
(A & A ENTERPRISES)
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Ottawa, Ontario
on Tuesday, April 27, 1999)
ROBERTSON J.A.
[1] We are all of the view that Judge Sarchuck did not err in holding that the appellant taxpayers had no reasonable expectation of profit for the 1983, 1984 and 1985 taxation years. It is true that the decision of this Court in Tonn v. Canada, [1996] 1 F.C. 73 (F.C.A.) was not decided until after Judge Sarchuck released his decision. Nonetheless, we have not been persuaded that anything that was decided in that case warrants our interference in the present circumstances. The reality is that the taxpayers undertook a venture without sufficient capital and a business plan. The fact that they rented the cabins in question to their relatives is also a factor which cannot be ignored.
[2] For these reasons, the appeals must be dismissed with one set of costs.
"J.T. Robertson"
J.A.