Date: 19990610

Docket: A-421-97

CORAM:      MARCEAU J.A.

         NOËL J.A.

         SEXTON J.A.

BETWEEN:

     GUNNAR KJELSTRUP MADSEN

     Appellant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

     REASONS FOR JUDGMENT OF THE COURT

     (Delivered from the Bench at Vancouver, British Columbia,

     on Thursday, June 10, 1999)

MARCEAU J.A.

[1]      We have not been shown that this appeal could succeed.

[2]      Counsel for the appellant made a skilful presentation as to a possible interpretation that the evidence could allow and the conclusion that could be drawn from it, having regard to the nature of the transactions involved. He had some valid points, including the one taken from the fact that his client had consented to giving a loan to the promoters of the scheme. Nevertheless, we do not think that, as a court of appeal, we are here entitled to contradict the findings of fact and, indeed, of credibility to which the learned Tax Court judge arrived. We feel bound by his ultimate conclusion to the effect that the appellant has entered into the tax shelter schemes for the sole purpose of seeking tax relief and in no way with a view to earning income from a business or property within the meaning of paragraph 18(1)(a) of the Income Tax Act.

[3]      The appeal will be dismissed with costs.

     "Louis Marceau"

     J.A.

Date: 19990610

Docket: A-421-97

CORAM:      MARCEAU J.A.

         NOËL J.A.

         SEXTON J.A.

BETWEEN:

     GUNNAR KJELSTRUP MADSEN

     Appellant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

Heard at Vancouver, British Columbia, on Thursday, June 10, 1999.

Judgment rendered from the Bench on Thursday, June 10, 1999.

REASONS FOR JUDGMENT OF THE COURT BY:      MARCEAU J.A.

     IN THE FEDERAL COURT OF APPEAL

Date: 19990610

Docket: A-421-97

BETWEEN:

     GUNNAR KJELSTRUP MADSEN

     Appellant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

     REASONS FOR JUDGMENT

     OF THE COURT