Juster v. Minister of National Revenue, (1974) 5 N.R. 219 (FCA)

• Judge: Jackett, C.J., Pratte, J. and Hyde, D.J.
• Court: Federal Court of Appeal (Canada)
• Case Date: September 10, 1974
• Jurisdiction: Canada (Federal)
• Citations: (1974), 5 N.R. 219 (FCA)

Juster v. MNR (1974), 5 N.R. 219 (FCA)

MLB headnote and full text

Juster v. Minister of National Revenue

Indexed As: Juster v. Minister of National Revenue

Federal Court of Appeal

Jackett, C.J., Pratte, J. and Hyde, D.J.

September 27, 1974.

Summary:

This case arose out of an assessment of an owner of race horses on the basis that any loss from the maintenance of the race horses was a farming loss and such loss could only be deducted from the taxpayer's chief source of income in accordance with the limitations imposed by s. 13 of the Income Tax Act. The owner's race horses were cared for by another person for a fee. The owner of the race horses alleged that the person who cared for the horses for a fee was in the business of farming and that the owner was not in the business of farming. The Tax Review Board allowed the appeal by the taxpayer from the Minister's assessment.

On appeal to the Trial Division of the Federal Court of Canada the appeal was allowed, the decision of the Tax Review Board was set aside, and the assessment made by the Minister of National Revenue was restored.

On appeal to the Federal Court of Appeal the appeal was dismissed and the judgment of the Trial Division was affirmed. The Federal Court of Appeal examined both the English and French versions of s. 139(1)(p) of the Income Tax Act and concluded that the scheme of the legislation required acceptance of the larger sense of the English words rather than the more restricted sense of the French words - see paragraphs 6 to 10.

Income Tax - Topic 1136

Income from a business or property - Deductions - Loss from farming where the taxpayer's chief source of income was not from farming - Whether the owner of race horses was in the business of farming or whether the person who cared for the owner's race horses for a fee was in the business of farming - The Federal Court of Appeal held that the owner of the race horses was in the business of farming and, accordingly, the loss limiting provisions of s. 13 of the Income Tax Act applied to the owner of the race horses.

Words and Phrases

Farming - The Federal Court of Appeal discussed the meaning of the word "farming" as found in s. 13 and s. 139 (1)(p) of the Income Tax Act, R.S.C. 1952, c. 148.

Statutes Noticed:

Official Languages Act, R.S.C. 1970, c. O-2, sect. 8(2)(a) [para. 9].

Interpretation Act, R.S.C. 1970, c. I-23, sect. 11 [para. 10].

Income Tax Act, R.S.C. 1952, c. 148, sect. 13, sect. 139(1)(p) [para. 1].

Counsel:

Stephen S. Heller, for the appellant;

Jean Potvin, for the respondent.

This appeal was heard by the Federal Court of Appeal at Montreal, Quebec, on September 10, 1974. Judgment was delivered by the Federal Court of Appeal on September 27, 1974 and the following opinions were filed:

JACKETT, C.J. - see paragraphs 1 to 12.

PRATTE, J. - see paragraphs 13 to 22.

HYDE, D.J., concurred with both JACKETT, C.J. and PRATTE, J.