| Citation: |
BAIRD v. Canada, 2010 FCA 35, [2010] 1 F.C.R. D-11 |
A-124-09 |
Income Tax
Income Calculation
Appeal from Tax Court of Canada (T.C.C.) decision (2009 TCC 24) dismissing appeal from Minister of National Revenue reassessments of 2001–2003 taxations years—Appellant granted 62 000 stock options, exercising options when leaving employment—Appellant selling shares, incurring losses reported as being on account of income—Main issue before T.C.C whether losses on account of capital or income—T.C.C. finding appellant neither carrying on business as trader in securities nor engaged in adventure in nature of trade with respect to his shares—Issue herein whether Tax Court Judge erring in concluding that appellant not engaged in adventure in nature of trade—Although definition of business in Income Tax Act, R.S.C., 1985 (5th Supp.), c.1, s. 248(1) including “an adventure or concern in the nature of trade”, not defining that concept—Requirement for taxpayer to have had intention of gaining profit from transaction—Taxpayer’s intention, at time of acquiring property at issue, always highly relevant factor—Only possible to determine that intention by examining taxpayer’s entire course of conduct—Tax Court Judge carefully reviewing appellant’s course of conduct, making factual findings, finding taxpayer not behaving as trader in regard to shares—Consequently, appellant not engaged in adventure in nature of trade—Appeal dismissed.
Baird v. Canada (A-124-09, 2010 FCA 35, Nadon J.A., judgment dated February 3, 2010, 14 pp.)