Date: 19981203

Docket: A-99-96

CORAM:      STRAYER J.A.

         ROBERTSON J.A.

         SEXTON J.A.

     IN RE: The Income Tax Act

BETWEEN:

     WILLIAM BROWN

     Appellants

    

     - and -

     HER MAJESTY THE QUEEN

     Respondents

     Heard at Toronto, Ontario, Wednesday, December 2, 1998

     Judgment delivered from the Bench

     at Toronto, Ontario on Wednesday, December 2, 1998

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

Date: 19981203

Docket: A-99-96

CORAM:      STRAYER J.A.

         ROBERTSON J.A.

         SEXTON J.A.

     IN RE: The Income Tax Act

BETWEEN:

     WILLIAM BROWN

     Appellant

    

     - and -

     HER MAJESTY THE QUEEN

     Respondent

    

     REASONS FOR JUDGMENT

     (Delivered from the Bench at Toronto, Ontario on

     Wednesday, December 2, 1998)

STRAYER, J.A.:

[1]      We are all satisfied that the learned Tax Court Judge had regard to the three essential criteria in determining whether the appellant's farming represented a chief source of income in the years in question. He found the time devoted by the appellant to his farm to be substantial, although the appellant's employment and other income earning activities also involved substantial time. He recognized that the appellant had invested more capital in his farm than in his other activities but correctly, in our view, gave less relative weight to this factor because by its nature his employment required no investment from him. Finally, he considered the potential profitability of the farm and found that there was "no realistic expectation of a substantial profit".

[2]      Thus the learned trial judge considered all factors, and after weighing them together was entitled to reach the conclusion which he did.

[3]      The appeal will therefore be dismissed with costs.

                                                     "B.L. Strayer"

                                 J.A.

              FEDERAL COURT OF CANADA

     Names of Counsel and Solicitors of Record

DOCKET:                      A-99-96

                        IN RE: The Income Tax Act

STYLE OF CAUSE:

                        WILLIAM BROWN

     Appellants

- and -

HER MAJESTY THE QUEEN

     Respondents

DATE OF HEARING:             WEDNESDAY, DECEMBER 2, 1998

PLACE OF HEARING:             TORONTO, ONTARIO

REASONS FOR JUDGMENT BY:      STRAYER J.A.

Delivered from the Bench at

Toronto, Ontario on

Wednesday, December 2, 1998

APPEARANCES:                  Mr. Richard Lockwood                                         

For the Appellant

                        Mr. Daniel Bourgeois

                                 For the Respondent

           

SOLICITORS OF RECORD:          Siskind, Cromarty, Ivey & Dowler

                        Barristers & Solicitors

                        680 Waterloo St.,

                        P.O. Box 2520, Stn. B

                        London, Ontario

                        N6A 3V8

For the Appellant

                        Morris Rosenberg

                        Deputy Attorney General

                        of Canada     

                                 For the Respondent

FEDERAL COURT OF APPEAL

Date: 19981203

Docket: A-99-96

IN RE: The Income Tax Act

BETWEEN:

WILLIAM BROWN

Appellants

- and -

HER MAJESTY THE QUEEN

Responden

REASONS FOR JUDGMENT

OF THE COURT