Canada ( Attorney General ) v. Séguin
A-52-97
Desjardins J.A.
15/9/97
5 pp.
Application for judicial review of Tax Court of Canada decision mortgage interest charges on respondent's former residence constituting moving expenses within meaning of Income Tax Act, s. 62-In early 1990, respondent, living in Montréal, accepting job in Outaouais region-During 1991 taxation year, respondent paying $9,321 in interest on mortgage on Montréal residence-Minister disallowing deduction thereof under Act, s. 62-Tax Court of Canada overturning Minister's decision-According to ordinary meaning of words used in Act, s. 62(1), provision includes expenses incurred for physically moving, changing residence, and certain other expenses directly related to actual move and resettlement, not amount intended to compensate for incidental damages unrelated to actual move to, resettlement in new residence-Thus, s. 62(1) excludes interest expenses on former residence not pertaining directly to physical move of taxpayer and family, but instead pertaining to bank loan taken out on former residence-Contrary to conclusion reached by Tax Court Judge, costs of cancelling lease not comparable to interest expenses on former residence-Application allowed-Income Tax Act, S.C. 197071-72, c. 63, s. 62(1) (as am. by S.C. 1984, c. 45, s. 21(1)).