MacIsaac v. Minister of National Revenue, (1974) 4 N.R. 503 (FCA)

• Judge: Jackett, C.J., Pratte, J.
• Court: Federal Court of Appeal (Canada)
• Case Date: June 13, 1974
• Jurisdiction: Canada (Federal)
• Citations: (1974), 4 N.R. 503 (FCA)

MacIsaac v. MNR (1974), 4 N.R. 503 (FCA)

MLB headnote and full text

MacIsaac v. Minister of National Revenue

Indexed As: MacIsaac v. Minister of National Revenue

Federal Court of Appeal

Jackett, C.J., Pratte, J.

and Drake, D.J.

June 13, 1974.

Summary:

This case arose out of an assessment against a taxpayer for the 1967 taxation year of a profit of $5000. received on the sale of a small apartment building. The taxpayer along with two other persons purchased a small apartment building. The taxpayer testified that his interest in the apartment building was an investment for his retirement. The Minister assessed as income a profit of $5000. made by the taxpayer on the sale of the apartment building in 1967. The apartment building was purchased in 1965. The taxpayer appealed the assessment to the Tax Review Board and his appeal was dismissed.

On appeal by the taxpayer to the Trial Division of the Federal Court of Canada the appeal was dismissed and the judgment of the Tax Review Board was affirmed.

On appeal to the Federal Court of Appeal the appeal was allowed, the judgment of the Trial Division was set aside and the taxpayer's assessment was referred back to the Minister for reassessment on the basis that the profit in question was not a profit from a business. The Federal Court of Appeal held that the taxpayer rebutted the presumption that the property was required for the purpose of being resold at a profit.

Income Tax - Topic 1053

Income from a business - Business intention - Whether a taxpayer rebutted the presumption that the property was acquired for the purpose of being resold at a profit - The taxpayer testified that he along with two other persons purchased a small apartment building for an investment for his retirement - The Federal Court of Appeal held that a $5,000. profit on the sale of the apartment building was not a profit from a business.

Words and Phrases

Business - The Federal Court of Appeal discussed the meaning of the word "business" as found in s. 139(1)(e) of the Income Tax Act, R.S.C. 1952, c. 148.

Cases Noticed:

Johnston v. Minister of National Revenue, [1948] S.C.R. 486, folld. [para. 5].

Statutes Noticed:

Income Tax Act, R.S.C. 1952, c. 148, s. 139(1)(e).

Counsel:

[None disclosed].