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Supreme Court of Canada

Taxation—Income tax—Capital cost allowance—Film bought for audited cost of production—Cost payment on the purchase price—Balance payable out of earnings—Real or contingent liability—Assessment limiting the capital cost for the purchasers to the cash payment—Income Tax Act, R.S.C. 1952, c. 148, as amended prior to 1970-71-72 (Can.), c. 63, s. ll(1)(a)—Income Tax Regulations, 1100(1)(a).

APPEAL from a judgment of the Federal Court of Appeal[1] affirming the judgment of Walsh J. of the Trial Division[2] dismissing the appellant’s appeal from a re-assessment made by the Minister of National Revenue for the 1971 taxation year. Appeal dismissed.

D.K. Laidlaw, Q.C., and P.H. Harris, for the appellant.

Wilfrid Lefebvre and Charles MacNab, for the respondent.

The judgment of the Court was delivered orally by

MARTLAND J.—The submissions made on behalf of the appellant have not persuaded us that there was any error in law in the result reached by the Federal Court of Appeal.

The appeal is dismissed with costs.

Appeal dismissed with costs.

Solicitors for the appellant: McCarthy & McCarthy, Toronto.

Solicitor for the respondent: W. Lefebvre, Ottawa.

 



[1] [1979] 1 F.C. 560.

[2] [1977] 1 F.C. 673.

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