Précis: The taxpayer was a non-profit corporation which operated a golf course. In 2006 it disposed of a vacant wooded area (the Parcel of Land) at a gain of some $1.7 million. It did not report the gain on its T3 Trust Income Tax return and in 2015 the Minister reassessed the taxpayer for not reporting the disposition and gain on its T3. The taxpayer’s position was that the gain was exempt since the Parcel of Land “was used exclusively and directly for providing dining, recreational or sporting facilities to its members, as required to fit the exemption under subparagraph 149(5)(e)(ii) of the Income Tax Act, RSC 1985 c. 1 (5th Supp) as amended, (the “ITA”).” [para. ]. While the Minister’s Amended Reply had been struck (with leave to further amend) by Paris J. in a prior hearing on the basis that it simply paraphrased the statute, the new Further Amended Reply was held by Favreau J. to be an appropriate statement of the facts behind the Minister’s position, not a paraphrase of the language of the ITA. The taxpayer’s motion to strike was dismissed with costs to the Minister on a party and party basis.
Mont-Bruno C.C. Inc. v. R. – TCC: Taxpayer’s attempt to attack Minister’s assumptions failed – the impugned provisions were not simply a paraphrase of the statuteREAD MORE »