DATE: 20050125

DOCKET: C41836

COURT OF APPEAL FOR ONTARIO

RE:

THE ATTORNEY GENERAL OF CANADA (Plaintiff/Respondent) v. COMMUNITY EXPANSION INC., 930943 ONTARIO LIMITED, 798894 ONTARIO LIMITED, HANMAR CORPORATION and 1148346 ONTARIO LIMITED (Defendants/Appellants)

BEFORE:

DOHERTY, BORINS and SHARPE JJ.A.

COUNSEL:

Michael A. van Bodegom

for the appellants

Peter A. Vita, Kevin Dias and P. Tamara Sugunasiri

for the respondent

HEARD & ENDORSED:

January 21, 2005

On appeal from the judgment of Justice R.D. Reilly of the Superior Court of Justice dated April 13, 2004.

A P P E A L B O O K E N D O R S E M E N T

[1] We are in substantial agreement with the reasons of Reilly J. both as they relate to the interpretation of the relevant provisions of the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) and the interpretation of First Vancouver Finance v. Canada, 2002 SCC 49, [2002] 2 S.C.R. 720.

[2] The appeal is dismissed.

[3] Costs to the respondent in the amount of $8,000.00, inclusive of disbursements and GST.