A-286-96

CORAM:      STRAYER, J.A.

         ROBERTSON, J.A.

         McDONALD, J.A.

B E T W E E N:

     DAN BROWN,

     Applicant,

     -and-

     HER MAJESTY THE QUEEN,

     Respondent.

    

HEARD at Toronto, Ontario, on Friday, March 21, 1997.

JUDGMENT delivered from the Bench at Toronto, Ontario, on Friday, March 21, 1997.

REASONS FOR JUDGMENT BY:             McDONALD, J.A.

     A-286-96

CORAM:      STRAYER, J.A.

         ROBERTSON, J.A.

         McDONALD, J.A.

B E T W E E N:

     DAN BROWN,

     Applicant,

     -and-

     HER MAJESTY THE QUEEN,

     Respondent.

     REASONS FOR JUDGMENT

     (Delivered from the Bench at Toronto,

     Ontario, on Friday, March 21, 1997)

McDONALD, J.A.:

     The issue on this application for judicial review is whether the Tax Court judge erred in concluding that the applicant's racing operation was not a business carried on with a reasonable expectation of profit for the 1990, 1991, and 1992 taxation years. In spite of the able argument of counsel, we have not been persuaded that the Tax Court Judge made any reviewable error in reaching the conclusions that he did.

     As he held, in are view correctly "the subjective hopes of commercial success of this applicant, made no doubt in good faith, are of themselves insufficient to confer upon this venture a reasonable expectation of profit".

     We believe that the test in Muldowan was correctly invoked and applied by the Tax Court Judge and accordingly the application for judicial review is dismissed.

                             "F.J. McDonald"

                                 J.A.

     FEDERAL COURT OF CANADA

     Names of Counsel and Solicitors of Record

COURT NO:                      A-286-96

STYLE OF CAUSE:             DAN BROWN

                        - and -

HER MAJESTY THE QUEEN

           

DATE OF HEARING:             MARCH 21, 1997

PLACE OF HEARING:             TORONTO, ONTARIO

REASONS FOR JUDGMENT BY:      McDONALD, J. A.

Delivered from the Bench at Toronto, Ontario

on Friday, March 21, 1997

APPEARANCES:

                        Mr. Richard E. Anka, Q.C.

                             For the Applicant

                        Ms. Donna A. Dorosh

                             For the Respondent

SOLICITORS OF RECORD:

                        Brans, Lehun, Baldwin & Champagne

                        1701-120 Adelaide Street West

                        Toronto, Ontario

                        M5H 1T1

                             For the Applicant

                        George Thomson

                        Deputy Attorney General

                        of Canada

                             For the Respondent

                     FEDERAL COURT OF CANADA

                     Court No.: A-286-96

                     Between:

                     DAN BROWN

     Applicant

                        - and -

HER MAJESTY THE QUEEN

                    

     Respondent

                     REASONS FOR JUDGMENT