Mould v. MNR, (1986) 2 F.T.R. 120 (TD)

• Judge: Collier, J.
• Court: Federal Court (Canada)
• Case Date: March 29, 1983
• Jurisdiction: Canada (Federal)
• Citations: (1986), 2 F.T.R. 120 (TD)

Mould v. MNR (1986), 2 F.T.R. 120 (TD)

MLB headnote and full text

Mould v. Minister of National Revenue

(No. T-1741-81)

Indexed As: Mould v. Minister of National Revenue

Federal Court of Canada

Trial Division

Collier, J.

January 29, 1986.

Summary:

A taxpayer appealed from an assessment by the Minister of National Revenue of the proceeds from the sale of land as income and not capital gain. The Tax Review Board dismissed the appeal. The taxpayer appealed.

The Federal Court of Canada, Trial Division, dismissed the appeal.

Income Tax - Topic 1012

Income from business or property - Income from property - Adventure in the nature of trade - A taxpayer invested in a company which owned land it intended to develop into serviced lots for sale - When the company subsequently decided to build houses on the lots for sale, the taxpayer sold his interest - The Federal Court, Trial Division, held that the gain was income and not a capital gain, because the taxpayer's investment in the company was an adventure in the nature of trade and not an investment.

Income Tax - Topic 1823

Capital gains and losses - Capital gains - Land - Capital gains v. ordinary income - A taxpayer invested in a company which owned land it intended to develop into serviced lots for sale - When the company subsequently decided to build houses on the lots for sale, the taxpayer sold his interest - The Federal Court, Trial Division, held that the gain was income and not a capital gain, because the taxpayer's investment in the company was an adventure in the nature of trade and not an investment.

Counsel:

Brian G. Morgan, for the plaintiff;

Paul Malette and Patricia Lee, for the defendant.

Solicitors of Record:

Osler, Haskin & Harcourt, Toronto, Ontario, for the plaintiff;

F. Iacobucci, Q.C., Deputy Attorney General of Canada, for the defendant.

This case was heard on March 29, 1983, at Toronto, Ontario, before Collier, J., of the Federal Court of Canada, Trial Division, who delivered the following judgment on January 29, 1986: