INCOME TAX |
Income Calculation |
Income or Capital Gain |
Ledoux v. Canada
A-813-97
Marceau J.A.
21/1/00
6 pp.
Appeal from T.C.C. decision affirming assessment by MNR against taxpayer for 1987--By assessment MNR allocated to taxpayer in entirety, and treated as business income, profits which he and persons related to him had made from series of transactions involving purchase and sale of building, which they had reported separately as capital gains--T.C.C. found series of complex transactions in 43 stages completed in a few days, involving participation of artificial persons, trusts and individuals forming partnerships, resulting in transfer of ownership of building, concealed profit made by taxpayer by disposing of rights obtained by operation of commercial nature--Appeal dismissed--No basis for disputing essential conclusions of fact on which decision based--One fact crucial: minimizing tax consequences of overall transaction was purpose for conceiving and carrying out series of manoeuvres in 43 stages--T.C.C. decision based on necessary conclusion, namely series of manoeuvres engaged in not only artificial in several respects but did not reflect actual transactions completed and did not correspond to actual relationships formed between parties: in short, constituted deception, subterfuge, sham.