Medland v. Canada
A-18-97
Desjardins J.A.
25/5/98
14 pp.
Application for judicial review of decision of Tax Court of Canada dismissing appeal from assessment against applicant made by MNR under Income Tax Act, s. 160(1)-Whether Tax Court Judge erred in concluding applicant's husband transferred property indirectly to applicant when husband made mortgage payments on house in which applicant had become sole owner-Applicant becoming liable for portion of taxes husband owed to respondent in respect of 1990, 1991, 1992, 1993 taxation years-Applicant, husband purchased house in 1985 as joint tenants-Purchase financed in part by way of mortgage loan from Toronto Dominion Bank-On April 8, 1987, property transferred to applicant alone without consideration being given-Minister assessing applicant in amount of $38,857.48 under Act, s. 160-Amount later reduced to $15,219.56-Tax policy embodied in s. 160(1) to prevent taxpayer from transferring property to spouse in order to thwart Minister's efforts to collect money owed to him-Whether husband "transferred property . . . indirectly by any other means" to wife-Tax Court Judge correct in concluding applicant's spouse transferred property indirectly to applicant to extent of portion of mortgage payments related to principal of mortgage-Word "property" in s. 160(1) meaning "property of any kind", including "money"-Words "indirectly . . . by . . . any other means" in s. 160(1) refer to any circuitous way in which property of any kind passes from one person to another-Applicant became less indebted by payments, equity in property increased-Payment to Bank simply conduit through which funds passed indirectly from husband to applicant-Application dismissed-Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 160(1).