Sie‑Mac Pipeline Contractors Ltd. v. M.N.R., [1993] 1 S.C.R. 895

Sie‑Mac Pipeline Contractors Ltd. Appellant

v.

Her Majesty The Queen Respondent

Indexed as: Sie‑Mac Pipeline Contractors Ltd. v. M.N.R.

File No.: 22775.

1993: March 24.

Present: La Forest, Gonthier, Cory, Iacobucci and Major JJ.

on appeal from the federal court of appeal

Income tax ‑‑ Deductions ‑‑ Use of recreational facilities ‑‑ Taxpayer incurring travel and entertainment expenses in hosting customers and employees at fishing lodge ‑‑ Whether expenses deductible ‑‑ Income Tax Act, S.C. 1970‑71‑72, c. 63, s. 18(1)(l)(i).

Statutes and Regulations Cited

Income Tax Act, S.C. 1970‑71‑72, c. 63, s. 18(1)(l)(i).

APPEAL from a judgment of the Federal Court of Appeal, 1991 CanLII 14118 (FCA), [1992] 1 C.T.C. 341, 92 D.T.C. 6461, setting aside a judgment of the Trial Division, 1990 CanLII 13395 (FC), [1990] 2 C.T.C. 8, 90 D.T.C. 6344, affirming a decision of the Tax Court of Canada, 1989 CanLII 10216 (TCC), [1989] 1 C.T.C. 2334, 89 D.T.C. 230. Appeal dismissed.

Donald N. Cherniawsky and H. George McKenzie, for the appellant.

M. David Gates and William L. Softley, for the respondent.

//Iacobucci J.//

The judgment of the Court was delivered orally by

Iacobucci J. ‑‑ We are all of the view that this appeal should be dismissed for the reasons given by Mr. Justice Linden of the Federal Court of Appeal. The expenses in question are clearly precluded by the provisions of s. 18(1)(l)(i) of the Income Tax Act.

Accordingly, the appeal is dismissed.

Under the circumstances, the appellant should have its costs in the courts below; there will be no order as to costs in this Court.

Judgment accordingly.

Solicitors for the appellant: Felesky Flynn, Edmonton.

Solicitor for the respondent: John C. Tait, Ottawa.