Bobby Doyon

The appellant appealed reassessments for the 2007, 2008, 2009, and 2012 taxation years regarding the characterization of profits from the sale of shares and losses from the expiration of stock options, as well as the deductibility of interest expenses.

The Tax Court of Canada found that the appellant was engaged in an adventure or concern in the nature of trade, meaning the profit from the sale of shares and the losses from the stock options were on income account.

The Court also disallowed the interest deduction as the appellant failed to prove the borrowed funds were used to earn income from a business or property.

The appellant appealed a reassessment for its 2013 taxation year made outside the normal reassessment period.

The Minister had disallowed maintenance and repair expenses and cumulative eligible capital deductions, and applied gross negligence penalties.

At the hearing, the respondent conceded that an invoice balance of $708,695.65 should be subtracted from the appellant's income.

The Tax Court found that the appellant knowingly made false statements by claiming fictitious expenses and that the Minister was justified in assessing beyond the normal period and imposing gross negligence penalties.

The appeal was allowed in part, without costs, solely to give effect to the respondent's concession.