Regina Shoppers Mall Ltd. v. Minister of National Revenue, (1989) 101 N.R. 405 (FCA)

• Judge: Marceau, Stone and Desjardins, JJ.A.
• Court: Federal Court of Appeal (Canada)
• Case Date: September 21, 1989
• Jurisdiction: Canada (Federal)
• Citations: (1989), 101 N.R. 405 (FCA)

Regina Shoppers Mall Ltd. v. MNR (1989), 101 N.R. 405 (FCA)

MLB headnote and full text

Regina Shoppers Mall Limited (appellant) v. Her Majesty the Queen (respondent)

(No. A-98-86)

Indexed As: Regina Shoppers Mall Ltd. v. Minister of National Revenue

Federal Court of Appeal

Marceau, Stone and Desjardins, JJ.A.

September 21, 1989.

Summary:

A company was incorporated in 1959 to purchase land (in 1960) for development of a shopping mall. The shopping mall was not feasible. The land was sold in 1976. The company treated the profit from the sale as a capital gain, one-half of which was taxable. The Minister assessed the profits as fully taxable income from an adventure in the nature of trade. The company's appeal to the Tax Review Board was dismissed. The company appealed.

The Federal Court of Canada, Trial Division, in a decision reported 1 F.T.R. 129, dismissed the appeal. The company appealed again.

The Federal Court of Appeal dismissed the appeal.

Income Tax - Topic 1020

Income from business or property - Income from property - Sale of land - Adventure in nature of trade - A company controlled by a real estate developer purchased land in 1960 for the development of a shopping mall - The project was not feasible, so the company sold the land in 1976 - At the time of acquisition, the company had no major tenancies or commitments - The Federal Court of Appeal affirmed that the profit from the sale was income from an adventure in the nature of trade and not a capital gain.

Cases Noticed:

Regal Heights Ltd. v. Minister of National Revenue, 60 D.T.C. 1270, refd to. [para. 1].

Racine, Demers and Nolin v. Minister of National Revenue, 65 D.T.C. 5098, refd to. [para. 1].

Counsel:

Warren J.A. Mitchell, for the appellant;

L.P. Chambers and N. Goldstein, for the respondent.

Solicitors of Record:

Thorsteinsson, Mitchell, Little, O'Keefe & Davidson, Vancouver, British Columbia, for the appellant;

John C. Tait, Q.C., Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard in Vancouver, British Columbia, on September 21, 1989, before Marceau, Stone and Desjardins, JJ.A., of the Federal Court of Appeal. The decision of the Court of Appeal was delivered orally from the Bench on September 21, 1989, by Marceau, J.A.