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Watt v. Canada

A-332-95

Décary J.A.

24/9/97

5 pp.

"Reasonable expectation of profit" case-Appeal from Tax Court of Canada decision related to horse-riding business-Tax Court Judge not misapplying reasonable expectation of profit test as set out in jurisprudence-Personal element may coexist with profit motive-Where personal element exists, Court to apply reasonable expectation of profit test more assiduously-Where personal element "dominant, motivating force", taxpayer's burden considerably more onerous-In taxation years at issue, appellant's daughter between 13 and 15 years of age-Open to Tax Court Judge to conclude direction towards creating business was started but for years in question all or most of necessary ingredients not there-Start-up period of appellant's business not yet begun-Start-up period herein to begin when rider has become accomplished rider-Premature to speak of business with reasonable expectation of profit-Appeal dismissed.

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