Côté v. Canada
T-522-89
Blais J.
11/12/98
9 pp.
Appeal from Tax Court of Canada decision affirming MNR assessment for 1985 denying deduction claimed by plaintiff ($12,815 for injunction to continue program) on ground plaintiff not independent contractor within meaning of Act-Plaintiff doctor joining research team at Lady Davis Institute, attached to Jewish General Hospital of Montréal-Plaintiff receiving grants-Appeal allowed-Plaintiff testified program plaintiff supervised since 1980 business in itself, intended to produce intellectual property which could result in capacity to market biomedical products developed or generate economic spinoffs from reputation of project, presentation of seminars, etc.-Expense of $12,815, incurred in action for injunction against Institute and Hospital, constitutes eligible expense ultimately enabling plaintiff to go ahead with research program, since expense made or incurred by taxpayer for purpose of gaining or producing income from business or property-Greater part of plaintiff's time in 1985, when problems arose with associates, taken up with developing and coordinating plaintiff's research program; this constitutes business, although in 1985, business produced no income for plaintiff-Income Tax Act, S.C. 1970-71-72, c. 63.