Toronto College Park Ltd. v. Canada
T-2243-90 / T-2244-90 / T-3227-90
Simpson J.
8/12/93
9 pp.
Appeal from reassessments by MNR concerning proper timing of deduction of tenant inducement payments and deductibility of landscaping expenses for 1984 and 1987 taxation years -- In 1983, plaintiff TCPL making two payments described as tenant inducements-Payments made in ordinary course of TCPL's business to earn income -- Issue when payments can be deducted under Income Tax Act-TCPL relying on decision in Cummings v. The Queen, 81 D.T.C. 5207 (F.C.A.) to support deduction of payments in year in which made -- Payments herein current running expenses as primary objective, to attract tenants to building, achieved in year of expense -- No obligation imposed by case law or Act to defer in case of current running expense -- Deduction of full amount of payments in 1983 allowed -- TCPL landscaping public park adjoining building -- Not owner of parkland in question -- Under Act, s. 20(1)(aa), ownership of land not condition precedent to deductibility of landscaping expenses -- Deduction for landscaping by TCPL allowed -- Landscape in urban context more than planning and planting of gardens and grounds -- "Earth and growing things" limitation sought by Crown too narrow -- Landscaping under Act involving alterations to earth's surface achieved by manipulating or reforming surface to provide more attractive and accessible environment -- Landscaping expenses including expenditures for earth and growing things, pathways and sidewalks, reflecting pools and fountains -- Landscaping excluding provision of movable surface items such as statues -- Appeal allowed in part -- Income Tax Act, 1970-71-72, c. 63, s. 20(1)(aa).