Silden v. Canada
A-1122-90
Pratte J.A.
25/6/93
5 pp.
Appeal from Trial Division's judgment ((1990), 38 F.T.R. 119 (F.C.T.D.)) allowing appeal from Tax Court decision ([1989] 1 C.T.C. 2122 (T.C.C.)) dismissing respondent's appeal from 1981 income tax assessment -- Whether sum of $55,000, loan made to respondent during said taxation year, to be included in computing income under Income Tax Act, s. 15(2) -- S. 15(2) applies not only to loans made to shareholders as shareholders but also to loans made in ordinary course of business to employees being shareholders -- S. 15(2) not requiring taxpayer to be shareholder of lender -- Taxpayer must be shareholder either of lender or of company related to it[cad 211]Trial Division clearly wrong in concluding second condition prescribed for application of s. 15(2)(a)(ii) met -- Loan not to be reimbursed within reasonable time as arrangements made at time of loan not determining with certainty deadline for reimbursement -- Appeal allowed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 15(2) (as am. by S.C. 1977-78, c. 1, s. 8; 1980-81-82-83, c. 48, s. 7).