A-576-96

CORAM:      MacGUIGAN, J.A.

         ROBERTSON, J.A.

         McDONALD, J.A.

B E T W E E N:

     CHRIS RIZOS

     Applicant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

    

HEARD at Toronto, Ontario, Wednesday, June 11, 1997.

JUDGMENT delivered from the Bench at Toronto, Ontario, on Wednesday,

June 11, 1997.

REASONS FOR JUDGMENT BY:             MacGUIGAN, J.A.

     A-576-96

CORAM:      MacGUIGAN, J.A.

         ROBERTSON, J.A.

         McDONALD, J.A.

B E T W E E N:

    

     CHRIS RIZOS

     Applicant

     - and -

     HER MAJESTY THE QUEEN

    

     Respondent

    

     REASONS FOR JUDGMENT

     (Delivered from the Bench at Toronto, Ontario,

     Wednesday, June 11, 1997)

MacGUIGAN, J.A.:

     We have not been persuaded that Sobier J.T.C.C. made any errors in his consideration of this case.

     In particular, we agree with the following passage in his reasons for decision (Respondent's Application Record, 92):

It appears that if they had not chosen to incorporate, they would very likely be entitled to the deduction of these expenses. However, the moneys were borrowed not for the purposes of gaining or producing income from property or a business, but for the purpose of advancing to the corporation, without any return on that investment from the corporation. Their return in the future might have been by way of dividends, but that was not the case.

     That having been said, we regard it as highly unfortunate that the Crown allowed another case involving similarly placed parties on the same facts to be proceeded with separately¹ on a different issue, and with a conflicting result. That is unfair both to the applicant and to the Court, and leaves a lingering sense of dissatisfaction with the result.

     Nevertheless, on the facts and issues before us the s.28 application must be dismissed.

    

                             "Mark R. MacGuigan"

                                 J.A.

         FEDERAL COURT OF CANADA

     Names of Counsel and Solicitors of Record

COURT NO:                      A-576-96

STYLE OF CAUSE:             CHRIS RIZOS

                        - and -

HER MAJESTY THE QUEEN

                       

           

DATE OF HEARING:             JUNE 11, 1997

PLACE OF HEARING:             TORONTO, ONTARIO

REASONS FOR JUDGMENT BY:      MacGUIGAN, J.A.

Delivered from the Bench at Toronto, Ontario

on Wednesday, June 11, 1997

APPEARANCES:

                        Mr. Chris Rizos

                       

                             For the Applicant

                        Ms. Marie Boris

                             For the Respondent

SOLICITORS OF RECORD:

                        Chris Rizos

                        5 Broadleaf Road

                        Don Mills, Ontario

                        M3B 1C1

                             For the Applicant

                       

                        George Thomson

                        Deputy Attorney General of Canada

                       

                             For the Respondent

                     FEDERAL COURT OF CANADA

                     Court File No.: A-576-96

                     Between:

                     CHRIS RIZOS

                                    Applicant

                        - and -

HER MAJESTY THE QUEEN

                                    Respondent

                     REASONS FOR JUDGMENT

__________________

     ¹      Lambrini Photos v. The Queen, decided by Christie A.C.J.C.C. on 15 July 1996, 96-41 (IT)I and 96-776 (IT)I.