BETWEEN:
and
Heard at Vancouver, British Columbia, on April 30, 2007.
Judgment delivered from the Bench at Vancouver, British Columbia, on April 30, 2007.
REASONS FOR JUDGMENT OF THE COURT BY: SHARLOW J.A.
Docket: A-412-06
Citation: 2007 FCA 175
CORAM: LÉTOURNEAU J.A.
EVANS J.A.
SHARLOW J.A.
BETWEEN:
JOSEPH GEORGE ZADOR
Appellant
and
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Vancouver, British Columbia, on April 30, 2007)
[1] This is an appeal of a judgment of the Tax Court of Canada (2006 TCC 545) dismissing the appellants’ income tax appeal for 2004.
[2] The issue is whether the Tax Court Judge was correct when he concluded that a moving expense is deductible under subsection 62(1) of the Income Tax Act, R.S.C. 1985, c. 1 (5th supp.) only when it is paid. The relevant parts of subsection 62(1) reads as follows (my emphasis):
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62. (1) […] there may be deducted amounts paid by the taxpayer as or on account of moving expenses incurred in the course of moving from the old residence to the new residence […]. |
62. (1) […] il peut déduire […] les sommes qu’il a payées au titre des frais de déménagement engages pour déménager de son ancienne residence pour venire occuper sa nouvelle residence […] |
[3] Mr. Zador argues that a moving expense is deductible when the taxpayer incurs a legal obligation to pay it. The Tax Court Judge did not accept Mr. Zador’s interpretation. He concluded that subsection 62(1) requires that a moving expense be paid before it is eligible for a deduction under that provision. We agree with him. In our view, the words of subsection 62(1) cannot reasonably bear the interpretation proposed by Mr. Zador.
[4] This appeal will be dismissed with costs.
FEDERAL COURT OF APPEAL
SOLICITORS OF RECORD
DOCKET: A-412-06
STYLE OF CAUSE: JOSEPH GEORGE ZADOR v. HMQ
PLACE OF HEARING: Vancouver, British Columbia
DATE OF HEARING: April 30, 2007
REASONS FOR JUDGMENT BY: LÉTOURNEAU J.A.
EVANS J.A.
SHARLOW J.A.
DELIVERED FROM THE BENCH BY: SHARLOW J.A.
DATED: April 30, 2007
APPEARANCES:
Joseph George Zador ON HIS OWN BEHALF
Sara Fairbridge FOR THE RESPONDENT
SOLICITORS OF RECORD:
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John H. Sims, Q.C. Deputy Attorney General of Canada |