Date: 19981009
Docket: A-114-96
CORAM: DESJARDINS, J.A.
LINDEN, J.A.
LETOURNEAU, J.A.
BETWEEN:
GLAXO WELLCOME INC.
Appellant
- and -
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT
[Delivered from the Bench at Toronto, Ontario
on Thursday, October 8, 1998]
DESJARDINS J.:
[1] Despite the valiant effort of counsel for the appellant, we agree with the interpretation given by Bowen J.T.C.C. to the word "used" in the definition of "former business property1" within the meaning of section 44 of the Income Tax Act, particularly where he said that the word ""use" connotes actual utilization for some purpose, not holding for future use2".
[2] The Tax Court Judge encapsulated his reasoning, with which we agree, as follows:
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[The property] was intended to be used, it was waiting to be used but in any meaningful sense of the term, it was not being used.3 |
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[3] There is nothing we could say better than what was stated by him in his analysis4.
[4] This appeal will be dismissed with costs.
"A. Desjardins"
J.A.
TORONTO, ONTARIO
October 9, 1998
FEDERAL COURT OF CANADA
Names of Counsel and Solicitors of Record
DOCKET: A-114-96
STYLE OF CAUSE: GLAXO WELLCOME INC. |
- and -
DATE OF HEARING: THURSDAY, OCTOBER 8, 1998
PLACE OF HEARING: TORONTO, ONTARIO
REASONS FOR JUDGMENT BY: DESJARDINS, J.A.
Delivered at Toronto, Ontario
on Thursday, October 8, 1998
APPEARANCES:
Mr. Geoffrey D. E. Adair
For the Applicant
Ms. Judith Sheppard
For the Respondent
SOLICITORS OF RECORD:
Enfield, Adair, Wood & McEwen
810-1 Queen Street East
Toronto, Ontario
M5C 2W5
For the Appellant
Morris Rosenberg
Deputy Attorney General
of Canada
For the Respondent
__________________
1 "Former Business Property" is thus defined in section 248 of the Income Tax Act S.C. 1970-71-72 c. 63 as it stood in the taxation year 1988:
"former business property" of a taxpayer means a capital property that was used by him primarily for the purpose of gaining or producing income from a business, and that was real property or an interest therein of the taxpayer, but does not include, ... [Emphasis added] |
"ancien bien d'entreprise" d'un contribuable s'entend d'un bien en immobilisation qu'il a utilisé principalement en vue de tirer un revenu d'une entreprise et qui était un bien immeuble ou un droit du contribuable sur un tel bien, mais ne comprend pas ... [Je souligne] |
2 AB 120
3 AB 126
4 The decision is reported as Glaxo Wellcome Inc. v. Her Majesty the Queen at 96 D.T.C. 1159 and [1996] 1 C.T.C. 2904.