Iula v. Canada
T-2509-88 / T-2510-88 / T-2511-88 / T-2512-88
MacKay J.
16/8/94
16 pp.
Appeals from decision of Tax Court of Canada dismissing appeal from reassessments by MNR in relation to income of each of taxpayers for 1979 -- Whether land transaction in which taxpayers involved in 1979 resulted in profits from sale properly classed as capital gains or as income arising from business or venture in nature of trade -- Minister classing revenue as income from business for each taxpayer -- Counsel for defendant submitting testimony of plaintiffs might be different, more self-serving than testimony offered at hearing before Tax Court -- Decision of Supreme Court of Canada in R. v. B. (K.G.), [1993] 1 S.C.R. 740, would support use of previous inconsistent statements to prove truth where requirements of reliability and necessity met -- Counsel for plaintiffs denying existence of inconsistencies of significance in testimony at Tax Court hearing and before Court -- Differences explicable by differences in questions asked -- Unnecessary to look to evidence provided by testimony at Tax Court -- No direct recanting of inconsistent evidence of significance earlier given at Tax Court by plaintiffs -- Trial of actions, although appeals from decisions of Tax Court, trials de novo -- In absence of consent, Court should not consider other evidence presented to Tax Court in earlier stage in resolution of tax liability of plaintiffs-Evidence adduced before Court considered as basis upon which Income Tax Act to be applied in trial -- Appeals allowed -- Income Tax Act, S.C. 1970-71-72, c. 63.