Wallace v. Canada, 98 DTC 6326 (FCA)

Date: 19980402

Docket: A-327-96

CORAM:      STRAYER, J.A.

         DESJARDINS, J.A.

         HENRY, D.J.

BETWEEN:

     KEITH E. WALLACE

     Applicant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

     REASONS FOR JUDGMENT

     (Judgment Delivered from the Bench at Toronto, Ontario

     on Thursday April, 2, 1998)

DESJARDINS, J.A.:

[1]      We are all of the view that this application for judicial review must fail.

[2]      The applicant became indebted to a company of which he was the sole shareholder on February 2, 1990, when the bank called in a guarantee undertaken by the company for a loan that had been made by the bank to the applicant personally. Pursuant to paragraph 15(2)(b) of the Income Tax Act, the amount of the indebtedness was to be included in computing the income of the applicant for the year 1990, unless the indebtedness was repaid within the year after the end of the taxation year of the company.

[3]      But this did not happen. As found by the Tax Court Judge, the applicant was not able to make repayment at all and the debt was written off by the company as uncollectible.

[4]      We are of the view that a write-off is not equivalent to a repayment, as claimed by the applicant, and that the Tax Court Judge properly directed himself in the law.

[5]      This application for judicial review will therefore be dismissed.

                         "A. Desjardins"

                             J.A.

     FEDERAL COURT OF CANADA

Date: 19980402

Docket: A-327-96

BETWEEN:

KEITH E. WALLACE

     Applicant

- and -

HER MAJESTY THE QUEEN

     Respondent

    

     REASONS FOR JUDGMENT

    

     FEDERAL COURT OF CANADA

     Names of Counsel and Solicitors of Record

DOCKET:                      A-327-96

STYLE OF CAUSE:                  KEITH E. WALLACE

    

                         - and -

                         HER MAJESTY THE QUEEN

    

DATE OF HEARING:              APRIL 2, 1998

PLACE OF HEARING:              TORONTO, ONTARIO

REASONS FOR JUDGMENT BY:          DESJARDINS, J.A.

DATED:                      APRIL 2, 1998

Delivered from the Bench at Toronto, Ontario

on Thursday April 2, 1998

APPEARANCES:                  Mr. John J. Vujicic

                                                                             For the Applicant

                         Mr. Marilyn Vardy

                        

                             For the Respondent

        

SOLICITORS OF RECORD:          Mr. John J. Vujicic

                         Barrister and Solicitor

                         Suite 1420

                         135 James Street South

                         Hamilton, Ontario

                         L8P 2Z6

    

                             For the Applicant

                

                         George Thomson

                         Deputy Attorney General

                         of Canada

                             For the Respondent