R. v. Mara Properties Ltd., [1996] 2 S.C.R. 161
Mara Properties Limited Appellant
v.
Her Majesty The Queen Respondent
Indexed as: R. v. Mara Properties Ltd.
1996: May 21.
Present: La Forest, L’Heureux‑Dubé, Sopinka, Cory, McLachlin, Iacobucci and Major JJ.
on appeal from the federal court of appeal
Income Tax -- Non-capital loss -- Company disposing of trading asset acquired from subsidiary -- Whether property retained character as inventory.
APPEAL from a judgment of the Federal Court of Appeal, 1995 3578 (FCA), [1995] 2 F.C. 433, 95 D.T.C. 5168, [1995] 2 C.T.C. 86, 179 N.R. 363, allowing an appeal from a judgment of Kempo J.T.C.C., 1993 17191 (TCC), 93 D.T.C. 1449, [1993] 2 C.T.C. 3189. Appeal allowed.
Warren J. A. Mitchell, Q.C., and Karen Sharlow, for the appellant.
Roger Taylor and Brent Paris, for the respondent.
The judgment of the Court was delivered orally by
1La Forest J. -- We agree with the conclusion reached by the Tax Court and McDonald J.A., the dissenting judge in the Court of Appeal, 1995 3578 (FCA), [1995] 2 F.C. 433, 95 D.T.C. 5168, [1995] 2 C.T.C. 86, 179 N.R. 363. In our view, in the circumstances of this case, the property retained its character as inventory in the hands of the appellant.
2Accordingly, the appeal is allowed with costs throughout, the judgment of the Court of Appeal is set aside, and the judgment of the Tax Court, 1993 17191 (TCC), 93 D.T.C. 1449, [1993] 2 C.T.C. 3189, is restored.
Judgment accordingly.
Solicitors for the appellant: Thorsteinssons, Vancouver.
Solicitor for the respondent: The Department of Justice, Vancouver.
