Poirier (Bankrupt) v. Minister of National Revenue, (1986) 2 F.T.R. 11 (TD)

CourtFederal Court (Canada)
Case DateNovember 13, 1984
JurisdictionCanada (Federal)
Citations(1986), 2 F.T.R. 11 (TD)

Poirier v. MNR (1986), 2 F.T.R. 11 (TD)

MLB headnote and full text

Clarkson Company Limited (Trustee of the Estate of Benoit Poirier, a Bankrupt) v. Minister of National Revenue

(No. T-2566-81)

Indexed As: Poirier (Bankrupt) v. Minister of National Revenue

Federal Court of Canada

Trial Division

Jerome, A.C.J.

February 14, 1986.

Summary:

A taxpayer involved in cattle breeding and other unrelated businesses deducted the full amount of farming losses from income. The Minister of National Revenue disallowed the full deduction and held that the deduction was restricted to that allowed under s. 31(1) of the Income Tax Act. The taxpayer appealed.

The Federal Court of Canada, Trial Division, allowed the appeal and held that the full amount of the losses was deductible.

Income Tax - Topic 1136

Income from business or property - Deductions for farming losses - Income Tax Act, S.C. 1970-71-72, c. 63, s. 31(1) - A taxpayer who owned several businesses started a cattle breeding operation - The operation was intended to produce a source of income and the commitment of time and money was of sufficient magnitude to reasonably conclude that the farming income combined with his other sources of income was expected to be his chief source of income - The Federal Court of Canada, Trial Division, held that the full amount of the taxpayer's farming losses were deductible; that the restrictions on deductions under s. 31(1) did not apply, notwithstanding the taxpayer's other sources of income.

Cases Noticed:

Hadley v. Minister of National Revenue, [1985] 1 C.T.C. 62, refd to. [para. 2].

Graham v. Minister of National Revenue, [1985] 1 C.T.C. 380; 59 N.R. 221 (Fed. C.A.), appld. [para. 2].

Moldowan v. Minister of National Revenue, [1977] C.T.C. 310; 15 N.R. 476 (S.C.C.), appld. [para. 2].

Kasper v. Minister of National Revenue, [1982] C.T.C. 178, refd to. [para. 2].

Statutes Noticed:

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 31 [para. 3].

Income Tax Act, S.C. 1979, c. 5, sect. 9 [para. 3].

Counsel:

Appearances: Thomas E. McDonnell, Q.C., and David G. Wentzell, for the plaintiff;

J. Paul Malette, for the defendant.

Solicitors of Record:

McMillan, Binch, Toronto, Ontario, for the plaintiff;

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

This appeal was heard on November 13, 1984 and January 9 and 10, 1985, at Toronto, Ontario, before Jerome, A.C.J., of the Federal Court of Canada, Trial Division, who delivered the following judgment on February 14, 1986.

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5 practice notes
  • Minister of National Revenue v. Craig, (2012) 433 N.R. 111 (SCC)
    • Canada
    • Canada (Federal) Supreme Court (Canada)
    • August 1, 2012
    ...National Revenue, [1989] 2 F.C. 418 ; 95 N.R. 140 (F.C.A.), refd to. [para. 11]. Poirier (Bankrupt) v. Minister of National Revenue (1986), 2 F.T.R. 11 (T.D.), refd to. [para. 11]. Watt v. Minister of National Revenue (2001), 273 N.R. 201 ; 2001 FCA 72 , refd to. [para. 11]. Minister o......
  • Gunn v. Minister of National Revenue, 2006 FCA 281
    • Canada
    • Canada (Federal) Federal Court of Appeal (Canada)
    • April 4, 2006
    ...2 F.C. 107 ; 59 N.R. 221 (F.C.A.), refd to. [para. 53]. Poirier (Bankrupt) v. Minister of National Revenue, [1986] 1 C.T.C. 308 ; 2 F.T.R. 11; 86 D.T.C. 6124 (T.D.), refd to. [para. Watt v. Minister of National Revenue (2001), 273 N.R. 201 ; 2001 FCA 72 , refd to. [para. 53]. Poirier......
  • Minister of National Revenue v. Craig, [2012] N.R. TBEd. AU.001
    • Canada
    • Canada (Federal) Supreme Court (Canada)
    • August 1, 2012
    ...dissenting; Morrissey v. Canada , [1989] 2 F.C. 418 (C.A.), per Mahoney J.A.; Poirier (in bankruptcy) v. Minister of National Revenue (1986), 2 F.T.R. 11, per Jerome A.C.J.; Watt v. Minister of National Revenue 2001 FCA 72, 273 N.R. 201, per Sexton J.A.) [12] The critics point out that the ......
  • Poirier (Bankrupt) v. Minister of National Revenue, (1992) 142 N.R. 156 (FCA)
    • Canada
    • Canada (Federal) Federal Court of Appeal (Canada)
    • March 25, 1992
    ...under s. 31(1) of the Income Tax Act . The taxpayer appealed. The Federal Court of Canada, Trial Division, in a decision reported at 2 F.T.R. 11, allowed the appeal and held that the full amount of the losses was deductible. The Minister The Federal Court of Appeal allowed the appeal. Inco......
  • Request a trial to view additional results
5 cases
  • Minister of National Revenue v. Craig, (2012) 433 N.R. 111 (SCC)
    • Canada
    • Canada (Federal) Supreme Court (Canada)
    • August 1, 2012
    ...National Revenue, [1989] 2 F.C. 418 ; 95 N.R. 140 (F.C.A.), refd to. [para. 11]. Poirier (Bankrupt) v. Minister of National Revenue (1986), 2 F.T.R. 11 (T.D.), refd to. [para. 11]. Watt v. Minister of National Revenue (2001), 273 N.R. 201 ; 2001 FCA 72 , refd to. [para. 11]. Minister o......
  • Gunn v. Minister of National Revenue, 2006 FCA 281
    • Canada
    • Canada (Federal) Federal Court of Appeal (Canada)
    • April 4, 2006
    ...2 F.C. 107 ; 59 N.R. 221 (F.C.A.), refd to. [para. 53]. Poirier (Bankrupt) v. Minister of National Revenue, [1986] 1 C.T.C. 308 ; 2 F.T.R. 11; 86 D.T.C. 6124 (T.D.), refd to. [para. Watt v. Minister of National Revenue (2001), 273 N.R. 201 ; 2001 FCA 72 , refd to. [para. 53]. Poirier......
  • Minister of National Revenue v. Craig, [2012] N.R. TBEd. AU.001
    • Canada
    • Canada (Federal) Supreme Court (Canada)
    • August 1, 2012
    ...dissenting; Morrissey v. Canada , [1989] 2 F.C. 418 (C.A.), per Mahoney J.A.; Poirier (in bankruptcy) v. Minister of National Revenue (1986), 2 F.T.R. 11, per Jerome A.C.J.; Watt v. Minister of National Revenue 2001 FCA 72, 273 N.R. 201, per Sexton J.A.) [12] The critics point out that the ......
  • Poirier (Bankrupt) v. Minister of National Revenue, (1992) 142 N.R. 156 (FCA)
    • Canada
    • Canada (Federal) Federal Court of Appeal (Canada)
    • March 25, 1992
    ...under s. 31(1) of the Income Tax Act . The taxpayer appealed. The Federal Court of Canada, Trial Division, in a decision reported at 2 F.T.R. 11, allowed the appeal and held that the full amount of the losses was deductible. The Minister The Federal Court of Appeal allowed the appeal. Inco......
  • Request a trial to view additional results

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