Dumas v. Minister of National Revenue, (1988) 92 N.R. 394 (FCA)
Judge | Pratte, Hugessen and Desjardins, JJ. |
Court | Federal Court of Appeal (Canada) |
Case Date | October 11, 1988 |
Jurisdiction | Canada (Federal) |
Citations | (1988), 92 N.R. 394 (FCA) |
Dumas v. MNR (1988), 92 N.R. 394 (FCA)
MLB headnote and full text
[French language version follows English language version]
[La version française vient à la suite de la version anglaise]
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Guy Dumas (appellant) v. Minister of National Revenue (respondent)
(A-674-80)
Indexed As: Dumas v. Minister of National Revenue
Federal Court of Appeal
Pratte, Hugessen and Desjardins, JJ.
October 11, 1988.
Summary:
Dumas sold the shares in his company for a $200,000.00 profit, which the Minister assessed as income, not a capital gain. The Tax Review Board held that the profit was a capital gain. The Minister appealed.
The Federal Court of Canada, Trial Division, allowed the appeal and held that the profit was income. Dumas appealed.
The Federal Court of Appeal allowed the appeal and restored the decision of the Tax Review Board.
Income Tax - Topic 1013
Income from business or property - Sale of shares - Dumas was the sole shareholder in a company incorporated in 1961 to carry on business as a general contractor and builder - In 1967 the company purchased land for development - Development plans be- came frustrated and Dumas agreed to sell the land to a third party - The land was the company's only asset, so the sale was effected by the third party purchasing all of Dumas' shares in the company - The Federal Court of Appeal held that the $200,000.00 profit from the sale of shares was a capital gain, not income - The court stated that Dumas purchased his shares as an investment, with no intention at the time of acquisition of selling them for a profit.
Income Tax - Topic 1752
Capital gains and losses - Capital gains - Sale of shares - [See Income Tax - Topic 1013 above].
Cases Noticed:
Minister of National Revenue v. Freud, [1969] S.C.R. 75, refd to. [para. 5].
McKinley v. Minister of National Revenue, [1974] D.T.C. 6138; [1974] C.T.C. 170, refd to. [para. 5].
Fraser v. Minister of National Revenue, [1964] S.C.R. 657, refd to. [para. 5].
Counsel:
Andre Lareau and Doris Savard, for the appellant;
Roger Roy, for the respondent.
Solicitors of Record:
Pothier, Begin & Associes, Sainte-Foy, Quebec, for the appellant;
Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.
This appeal was heard on October 11, 1988, by Pratte, Hugessen and Desjardins, JJ., of the Federal Court of Appeal.
On October 11, 1988, Pratte, J., delivered the following judgment in both official languages for the Federal Court of Appeal.
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Mandryk v. Minister of National Revenue, (1992) 141 N.R. 371 (FCA)
...of National Revenue (1990), 90 D.T.C. 1584 (T.C.C.), refd to. [para. 15]. Dumas v. Minister of National Revenue, [1989] 2 F.C. 58 ; 92 N.R. 394 (F.C.A.), refd to. [paras. 15, Stein Estate v. Ship Kathy K, [1976] 2 S.C.R. 802 ; 6 N.R. 359 ; 62 D.L.R.(3d) 1 , refd to. [para. 22]. Canada......
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Mandryk v. Minister of National Revenue, (1992) 141 N.R. 371 (FCA)
...of National Revenue (1990), 90 D.T.C. 1584 (T.C.C.), refd to. [para. 15]. Dumas v. Minister of National Revenue, [1989] 2 F.C. 58 ; 92 N.R. 394 (F.C.A.), refd to. [paras. 15, Stein Estate v. Ship Kathy K, [1976] 2 S.C.R. 802 ; 6 N.R. 359 ; 62 D.L.R.(3d) 1 , refd to. [para. 22]. Canada......