Norton Investments Ltd. v. Minister of National Revenue, (1978) 20 N.R. 369 (FCA)

• Judge: Pratte and Urie, JJ. and MacKay, D.J.
• Court: Federal Court of Appeal (Canada)
• Case Date: January 23, 1978
• Jurisdiction: Canada (Federal)
• Citations: (1978), 20 N.R. 369 (FCA)

Norton Inv. Ltd. v. MNR (1978), 20 N.R. 369 (FCA)

MLB headnote and full text

Norton Investments Ltd. v. Minister of National Revenue

Indexed As: Norton Investments Ltd. v. Minister of National Revenue

Federal Court of Appeal

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

January 23, 1978.

Summary:

This headnote contains no summary.

Income Tax - Topic 1020

Income from property - Sale of land - Whether the purchase and sale of land was in the nature of a trade and thereby taxable as income - Income Tax Act (1952), s. 139(1)(e) - In 1964 a taxpayer purchased 2 lots of land for $125,000 on Melville Street in Vancouver, British Columbia - The land was purchased for the purpose of leasing it to a developer or selling it at the right price - In 1970 the taxpayer sold the 2 lots for $250,000 - The Federal Court of Appeal held that the Minister of National Revenue properly added $125,000 to the taxpayer's taxable income for 1970.

Words and Phrases

Adventure or concern in the nature of trade - The Federal Court of Appeal discussed the meaning of the phrase "adventure or concern in the nature of trade" as found in s. 139(1)(e) of the Income Tax Act, R.S.C. 1952, c. 148.

Cases Noticed:

Regal Heights Limited v. M.N.R., [1960] S.C.R. 902, refd to. [para. 5].

M.N.R. v. Foreign Power Securities Ltd., [1967] S.C.R. 295, refd to. [para. 5].

Warnford Court (Canada) Ltd. v. M.N.R., [1964] Ex C.R. 944, refd to. [para. 5].

McDonald v. The Queen, 74 D.T.C. 6644; 6 N.R. 298, refd to. [para. 5].

Statutes Noticed:

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

Counsel:

Robert W.V. Dickerson, for plaintiff (appellant);

William Hohmann, for defendant (respondent).

This appeal was heard by PRATTE and URIE, JJ. and MACKAY, D.J. at Vancouver, B.C. on January 17 and 23, 1978.

The judgment of the Federal Court of Appeal was delivered by URIE, J. at Vancouver, British Columbia on January 23, 1978.