ITT Industries of Canada Ltd. v. Minister of National Revenue, (1999) 162 F.T.R. 258 (TD)

• Judge: Simpson, J.
• Court: Federal Court (Canada)
• Case Date: December 17, 1998
• Jurisdiction: Canada (Federal)
• Citations: (1999), 162 F.T.R. 258 (TD)

ITT Ind. v. MNR (1999), 162 F.T.R. 258 (TD)

MLB headnote and full text

Temp. Cite: [1999] F.T.R. TBEd. FE.034

ITT Industries of Canada Ltd. (plaintiff) v. Her Majesty the Queen (defendant)

(T-1048-89)

Indexed As: ITT Industries of Canada Ltd. v. Minister of National Revenue

Federal Court of Canada

Trial Division

Simpson, J.

February 1, 1999.

Summary:

The plaintiff owned a tree farm license (TFL 6). A tree farm license was an agree­ment between the Province of British Columbia and the holder. It generally pro­vided the holder with exclusive rights to cut timber owned by the Province in specified areas. TFL 6 was a perpetual license, granted by the Province to a predecessor of the plaintiff on October 26, 1950. The plaintiff sold TFL 6. The Minister of National Reve­nue brought a motion to determine whether TFL 6 was a "timber resource property" within the meaning of s. 13(21)(d.1) of the Income Tax Act, R.S.C. 1952, c. 148. The plaintiff claimed that TFL 6 was a timber limit.

The Federal Court of Canada, Trial Di­vision, held that the license was a "timber resource property" within the meaning of s. 13(21)(d.1).

Income Tax - Topic 1039

Income from a business or property - Income from property - Timber resource property - The plaintiff owned a tree farm license (TFL 6) - A tree farm license was an agreement between the Province of British Columbia and the holder - It gen­erally provided the holder with exclusive rights to cut timber owned by the Province

in specified areas - TFL 6 was a perpetual license, granted by the Province to a pre­decessor of the plaintiff on October 26, 1950 - The plaintiff sold TFL 6 - The Minister of National Revenue took the position that TFL 6 was a "timber resource property" within the meaning of s. 13(21)(d.1) of the Income Tax Act - The plaintiff claimed that it was a timber limit - The Federal Court of Canada, Trial Di­vision, held that the license was a "timber resource property" within the meaning of s. 13(21)(d.1).

Cases Noticed:

Kettle River Sawmills Ltd. v. Minister of National Revenue (1993), 164 N.R. 241; 94 D.T.C. 6086 (F.C.A.), affing. (1992), 56 F.T.R. 191; 92 D.T.C. 6525 (T.D.), refd to. [para. 10].

R. v. Sellars, [1980] 1 S.C.R. 527; 32 N.R. 70, dist. [para. 19].

Friedmann Equity Developments Inc. v. Final Note Ltd. et al. (1998), 112 O.A.C. 253 (C.A.), dist. [para. 19].

Statutes Noticed:

Income Tax Act, R.S.C. 1952, c. 148, sect. 13(21)(d.1) [para. 7].

Counsel:

Colin Campbell and Brian Carr, for the plaintiff;

Jag S. Gill, Q.C and David E. Spiro, for the defendant.

Solicitors of Record:

Davies, Ward & Beck, Toronto, Ontario, for the plaintiff;

Morris Rosenberg, Deputy Attorney Gen­eral of Canada, Ottawa, Ontario, for the defendant.

This motion was heard at Toronto, Ontario, on December 17, 1998, by Simpson, J., of the Federal Court of Canada, Trial Division, who delivered the following decision on February 1, 1999.