Tomenson Inc. v. Minister Of National Revenue, (1988) 84 N.R. 233 (FCA)

• Judge: Heald, Marceau and MacGuigan, JJ.
• Court: Federal Court of Appeal (Canada)
• Case Date: January 13, 1988
• Jurisdiction: Canada (Federal)
• Citations: (1988), 84 N.R. 233 (FCA)

Tomenson Inc. v. MNR (1988), 84 N.R. 233 (FCA)

MLB headnote and full text

Tomenson Inc. (appellant/plaintiff) v. Her Majesty the Queen (respondent/defendant)

(No. A-322-86)

Indexed As: Tomenson Inc. v. Minister Of National Revenue

Federal Court of Appeal

Heald, Marceau and MacGuigan, JJ.

January 13, 1988.

Summary:

The plaintiff insurance broker bought some general insurance agency lists of customers from a group of insurance agencies, one or more of which were in the process of liquidation. The insurance broker alleged that the purchase price was a deductible expense, while the Minister of National Revenue alleged that the expenditure was a capital outlay and therefore not deductible. The Minister reassessed the broker's 1975 taxes. The broker brought an action disputing the reassessment.

The Federal Court of Canada, Trial Division, in a decision reported at 4 F.T.R. 1, agreed with the Minister's contention and affirmed the reassessment of 1975 taxes. Accordingly, the court dismissed the insurance broker's action. The insurance broker appealed.

The Federal Court of Appeal dismissed the appeal.

Income Tax - Topic 1303

Income from business or property - Deductions not allowed - Respecting capital outlays - An insurance broker bought some general insurance agency lists of customers from a group of insurance agencies, one or more of which were in the process of liquidation - The Federal Court of Canada, Trial Division, held that the purchase price was a capital outlay and not deductible in computing taxable income - The Federal Court of Appeal affirmed the decision.

Counsel:

S.E. Edwards, Q.C., for the appellant/plaintiff;

P. Malette and A. Brown, for the respondent/defendant.

Solicitors of Record:

Fraser & Beatty, Toronto, Ontario, for the appellant/plaintiff;

Frank Iacobucci, Q.C., Deputy Attorney General of Canada, Toronto, Ontario, for the respondent/defendant.

This appeal was heard in Toronto, Ontario, on January 13, 1988, before Heald, Marceau and MacGuigan, JJ., of the Federal Court of Appeal. The following decision of the Court of Appeal was delivered from the Bench by Heald, J., on January 13, 1988.