Date: 19971210

     File: A-790-96

QUÉBEC, QUEBEC, THIS 10th DAY OF DECEMBER 1997

Coram:      THE HONOURABLE MR. JUSTICE DENAULT

         THE HONOURABLE MADAME JUSTICE DESJARDINS

         THE HONOURABLE MR. JUSTICE LÉTOURNEAU

Between:

     ATTORNEY GENERAL OF CANADA,

     Applicant,

And:

     DIANE BOUCHARD,

     Respondent.

And:

     CAROL ARBOUR,

     Intervener.

     JUDGMENT

     The application for judicial review is dismissed.

     Pierre Denault

                                             J.A.

Certified true translation

C. Delon, LL.L.

---

     Date: 19971210

     File: A-790-96

Coram:      THE HONOURABLE MR. JUSTICE DENAULT

         THE HONOURABLE MADAME JUSTICE DESJARDINS

         THE HONOURABLE MR. JUSTICE LÉTOURNEAU

Between:

     ATTORNEY GENERAL OF CANADA,

     Applicant,

And:

     DIANE BOUCHARD,

     Respondent.

And:

     CAROL ARBOUR,

     Intervener.

     Hearing held at Québec, Quebec, on Wednesday, December 10, 1997

     Judgment delivered at Québec, Quebec, on Wednesday, December 10, 1997

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

     Date: 19971210

     File: A-790-96

QUÉBEC, QUEBEC, THIS 10th DAY OF DECEMBER 1997

Coram:      THE HONOURABLE MR. JUSTICE DENAULT

         THE HONOURABLE MADAME JUSTICE DESJARDINS

         THE HONOURABLE MR. JUSTICE LÉTOURNEAU

Between:

     ATTORNEY GENERAL OF CANADA,

     Applicant,

And:

     DIANE BOUCHARD,

     Respondent.

And:

     CAROL ARBOUR,

     Intervener.

     REASONS FOR JUDGMENT OF THE COURT

     (Delivered from the bench at Québec, Quebec,

     on Wednesday, December 10, 1997)

DESJARDINS J.A.

[1]      We are all of the opinion that there is no reason to intervene in the decision of the judge of the Tax Court of Canada. The judge instructed himself correctly on the law. Moreover, it was open to him to draw the inferences he reached in respect of the facts.

[2]      Accordingly, the application for judicial review will be dismissed.

     Alice Desjardins

                                             J.A.

Certified true translation

C. Delon, LL.L.

     FEDERAL COURT OF CANADA

    

     File: A-790-96

Between:

Between:

ATTORNEY GENERAL OF CANADA,

     Applicant,

And:

DIANE BOUCHARD,

     Respondent.

And:

CAROL ARBOUR,

     Intervener.

    

     REASONS FOR JUDGMENT OF THE COURT

    

     FEDERAL COURT OF APPEAL

     NAMES OF COUNSEL AND SOLICITORS OF RECORD

COURT FILE NO:      A-790-96

STYLE OF CAUSE:      ATTORNEY GENERAL OF CANADA,

     Applicant,

         And:

DIANE BOUCHARD,      Respondent,

         And:

         CAROL ARBOUR,

     Intervener.

PLACE OF HEARING:      Quebec

REASONS FOR JUDGMENT

OF THE COURT BY:      The Honourable Mr. Justice Denault

         The Honourable Madame Justice Desjardins

         The Honourable Mr. Justice Létourneau

DATED:      December 10, 1997

APPEARANCES:

     Paul Plourde      For the applicant

     Luc Lavoie      For the respondent and the intervener

SOLICITORS OF RECORD:

     DEPARTMENT OF JUSTICE

     222 Queen St.

     Ottawa, Ontario K1A 0H8      For the applicant

     SULLIVAN ET LAVOIE

     59 rue Nairn

     La Malbaie, Quebec G5A 1L8      For the respondent and the intervener