A-373-96

CORAM:      DENAULT, J.A.

         LINDEN, J.A.

         ROBERTSON, J.A.

Between:

     RAMON DONATI

     Appellant/Applicant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

Heard at Vancouver, BC on September 3, 1997

Reasons delivered from the Bench at Vancouver, BC

on September 3, 1997

REASONS FOR JUDGMENT: DENAULT, J.A.

     A-373-96

CORAM:      THE HONOURABLE MR. JUSTICE DENAULT

         THE HONOURABLE MR. JUSTICE LINDEN

         THE HONOURABLE MR. JUSTICE ROBERTSON

Between:

     RAMON DONATI

     Appellant/Applicant

     - and -

     HER MAJESTY THE QUEEN

     Respondent

     REASONS FOR JUDGMENT

     (Delivered from the Bench at

     Vancouver, B.C. on September 3, 1997)

DENAULT, J.A.

     This is an application for judicial review of a judgment of the Tax Court of Canada dated March 25, 1996, by which it determined that the losses incurred by the Applicant in the establishment of a recording studio were not losses from a business, and that certain automobile expenses, in excess of the amounts allowed by the Minister of National Revenue, were not incurred by the Applicant for purposes of earning income from employment. The Tax Court Judge dismissed the Applicant's appeal from the reassessment for his 1990-1991-1992 taxation years.

     In our view, it has not been demonstrated that the learned Tax Court Judge, in disposing of the matter as she did, erred in any way that would warrant the intervention of this Court. There was ample evidence upon which to conclude that the Applicant had no reasonable expectation of profit. With respect to the Applicant's automobile expenses, the Tax Court Judge made no error in dismissing his appeal on that issue.

     This application for judicial review will be dismissed.

                             (Sgd.) "Pierre Denault"

                                 J.A.

September 3, 1997

Vancouver, British Columbia

     NAMES OF COUNSEL AND SOLICITORS OF RECORD

COURT NO.:             A-373-96

STYLE OF CAUSE:          RAMON DONATI

                     - and -

                     HER MAJESTY THE QUEEN

PLACE OF HEARING:          Vancouver, BC

DATE OF HEARING:          September 3, 1997

REASONS FOR JUDGMENT OF THE COURT BY: DENAULT, J.A.

CONCURRED IN BY:      LINDEN, J.A.

                 ROBERTSON, J.A.

DATED:                  September 3, 1997

APPEARANCES:

     Mr. Peter Eccles          for Appellant

     Mr. Brent Paris

     Mr. J. A. Basran          for Respondent

SOLICITORS OF RECORD:

     Connell, Lightbody          for Appellant

     Vancouver, BC

     George Thomson          for Respondent

     Deputy Attorney General of Canada