McDonald v. MNR, (1974) 6 N.R. 298 (FCA)

JudgePratte and Urie, JJ. and Sheppard, D.J.
CourtFederal Court of Appeal (Canada)
Case DateNovember 19, 1974
JurisdictionCanada (Federal)
Citations(1974), 6 N.R. 298 (FCA)

McDonald v. MNR (1974), 6 N.R. 298 (FCA)

MLB headnote and full text

McDonald v. Minister of National Revenue

Indexed As: McDonald v. Minister of National Revenue

Federal Court of Appeal

Pratte and Urie, JJ. and Sheppard, D.J.

November 20, 1974.

Summary:

This headnote contains no summary.

Income Tax - Topic 1020

Income from property - Sale of land - What constitutes a venture in the nature of a trade - Intention of the taxpayer - The taxpayer purchased land with the intention of selling it when the price increased so as to make it expedient to sell - The Federal Court of Appeal affirmed the minister's assessment of income tax against the taxpayer and rejected the taxpayer's contention that the profit on the sale was a capital gain - The Federal Court of Appeal stated that it was irrelevant that the taxpayer intended to retain the land for a substantially longer period than, in fact, he did - See paragraph 7.

Cases Noticed:

California Copper Syndicate v. Harris (1904), 5 T.C. 159, folld. [para. 8].

C.I.R. v. Livingston et al. (1926), 11 T.C. 538, folld. [para. 8].

C.I.R. v. Fraser (1940-42), 24 T.C. 498, folld. [para. 8].

Regal Heights Limited v. M.N.R., [1960] S.C.R. 902, folld. [para. 8].

Counsel:

Pat Thorsteinsson, for the appellant;

F.J. Dubrule, Q.C. and B. Wallace, for the respondent.

This appeal was heard by the Federal Court of Appeal at Vancouver, B.C. on November 19, 1974. Judgment was delivered by the Federal Court of Appeal on November 20, 1974.

The judgment of the Federal Court of Appeal was delivered by URIE, J.

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