A-550-96
CORAM: THE HONOURABLE THE CHIEF JUSTICE
THE HONOURABLE MR. JUSTICE STONE
THE HONOURABLE MR. JUSTICE MCDONALD
BETWEEN:
JOSEPH A. MACDONELL,
Appellant,
- and -
HER MAJESTY THE QUEEN,
Respondent.
Heard at Halifax, Nova Scotia on Wednesday, May 7, 1997.
Judgment delivered from the Bench at Halifax, Nova Scotia,
on Wednesday, May 7, 1997.
REASONS FOR JUDGMENT OF THE COURT BY:
THE CHIEF JUSTICE
A-550-96
CORAM: THE HONOURABLE THE CHIEF JUSTICE
THE HONOURABLE MR. JUSTICE STONE
THE HONOURABLE MR. JUSTICE MCDONALD
BETWEEN:
JOSEPH A. MACDONELL,
Appellant,
- and -
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT OF THE COURT
This is an application for judicial review of a judgment of the Tax Court of Canada dated 17 May, 1996 dismissing the appellant's appeal from assessments made by the Minister of National Revenue under the Income Tax Act ("the Act") for the years 1989 and 1990.
For the reasons that follow we are all of the view that the application cannot succeed.
The applicant had appealed to the Tax Court of Canada from a decision of the Minister of National Revenue that a loan which the applicant had made to a corporation of which he was the sole shareholder and which the applicant had forgiven as part of the sale of his business, was not a capital loss as defined in paragraph 39(1)(c) of the Act and was therefore not deductible as such under subparagraph 40(2)(g)(ii) of the Act, on the basis that the loan was not a bad debt and that in forgiving the loan to the corporation of which he was the sole shareholder, the applicant was not dealing with the corporation at arms length.
In reaching his conclusion, the Deputy Tax Court Judge made findings of fact which were supported by the evidence and we are quite unable to say that he made any error in fact or in law which warrants our interference.
The section 28 application will therefore be dismissed.
" Julius A. Isaac"
C.J.
FEDERAL COURT OF APPEAL
Names of Counsel and Solicitors of Record
COURT NUMBER: A-550-96
STYLE OF CAUSE: Joseph A. MacDonell
v.
Her Majesty the Queen
PLACE OF HEARING: Halifax, Nova Scotia
DATE OF HEARING: May 7, 1997
REASONS FOR JUDGMENT OF THE COURT: (The Chief Justice, Stone,
McDonald JJ.A)
RENDERED FROM THE BENCH BY: The Chief Justice
APPEARANCES:
Mr. Joseph A. MacDonell
for Appellant
Mr. Peter Leslie
for Respondent
SOLICITORS OF RECORD:
Joseph A. MacDonell
Shubenacadie, Nova Scotia
for Appellant
George Thomson
Deputy Attorney General of Canada
Ottawa, Ontario
for Respondent