Date: 20001023

Docket: A-748-96

CORAM:      ROTHSTEIN J.A.

         MCDONALD J.A.

         SHARLOW J.A.

    

BETWEEN:

     MERVIN L. RIDDELL

     Appellant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

    

     Heard at Toronto, Ontario on Monday, October 23, 2000

     Judgment delivered at Toronto, Ontario

     on Monday, October 23, 2000

    

                                        

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

    

                    

Date: 20001023

Docket: A-748-96

                                   

CORAM:      ROTHSTEIN J.A.

         MCDONALD J.A.

         SHARLOW J.A.

    

BETWEEN:

     MERVIN L. RIDDELL

     Appellant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

     REASONS FOR JUDGMENT

(Delivered from the Bench at Toronto, Ontario

on Monday, October 23, 2000)

ROTHSTEIN J.A.

[1]      While we may not have placed the weight that the Trial Judge did on the appellant's personal use of his US real property, we cannot say that his assessment was not based on the evidence before him or that he made a palpable or overriding error. In concluding that the appellant did not have a reasonable expectation of profit with respect to this property, the Tax Court Judge combined his assessment of personal use with his finding that the property was "financed to the hilt" and that the expectation for income was unrealistic. There was evidence to support these findings. We are not persuaded that the Trial Judge made any error of law in reaching this conclusion.

[2]      The appellant makes a further argument that his appeal has been prejudged because the Tax Court decision in this case was referred to with apparent approval in Mastri v. Canada (Attorney General)1998 1 F.C. 66. While it is regrettable that the comment in Mastri gave the appellant the impression that his appeal was prejudged, we do not agree that it was. The reference in Mastri, taken in its context, was only an elaboration of the statement that Tonn et al. v. The Queen 96 D.T.C. 6001 did not represent a change in the law respecting reasonable expectation of profit.

[3]      The appeal will be dismissed with costs.

                                 "Marshall Rothstein"

     J.A.

            FEDERAL COURT OF CANADA

     Names of Counsel and Solicitors of Record

                            

DOCKET:                  A-748-96

    

STYLE OF CAUSE:             MERVIN L. RIDDELL

     Appellant

                     - and -

                     HER MAJESTY THE QUEEN

     Respondent

DATE OF HEARING:          MONDAY, OCTOBER 23, 2000

PLACE OF HEARING:          TORONTO, ONTARIO

REASONS FOR JUDGMENT BY:      ROTHSTEIN J.A.

DATED:                  MONDAY, OCTOBER 23 , 2000

APPEARANCES BY:          Mr. Mervin L. Riddell

                        On his own behalf

                     Mr. Daniel Bourgeois

                    

                        For the Respondent

SOLICITORS OF RECORD:      Mervin L. Riddell

                     Barrister, Solicitor & Notary Public

                     408 Talbot Street

                     Suite 200

St. Thomas, Ontario

N5P 1B8

For the Appellant

                     Morris Rosenberg

Deputy Attorney General of Canada

For the Respondent

                        FEDERAL COURT OF CANADA

COURT OF APPEAL

Date: 20001023

Docket: A-748-96

                       

                        BETWEEN:

MERVIN L. RIDDELL

     Appellant

                        - and -

                        HER MAJESTY THE QUEEN

     Respondent

                       

                        REASONS FOR JUDGMENT