26 February 1990 Internal T.I. 90M02419 F - Adverse Decision of the Tax Court of Canada

James D. BeyetteAdverse Decision of the Tax Court of Canada

We are replying to R. Pitre's memorandums dated February 2 and 13 concerning your adverse decision report and draft DECISIONS Communiqué, respectively, in the above-mentioned case.

We agree with the recommendations of your Branch that this decision should not be appealed to the federal Court since the judgement is based on a finding of fact and is not contrary to the law in subsection 62(1).

With respect to the Decisions Communiqué which you propose to issue, we offer the following comments for your consideration:

(i)       Add the word "EXPENSES" after "MOVING" at the end of line 2.

(ii)      Combine paragraph 3 into the first sentence of paragraph 2. Lines 2 and 3 of paragraph 2 will then read "...of the Act (subsection 62(1)), it is a question of fact whether or not a move, within a short period of time or otherwise, is by reason of a taxpayer's new employment. Paragraph 15..."

(iii)       In connection with the statement that IT-178R2 will be amended, we understand that the Publications Division has not been informed of this adverse decision. Thus, the statement is somewhat premature. However, we will advise the Publications Division that paragraph 15 of IT-178R2 and paragraph 15 of the Special Release to IT-178R2 should be amended to reflect the decision in this case.

Bernhard BuetowChiefTechnical Review SectionPublications DivisionLegislative Affairs Branch

GM/hm(38) COR "A"

c.c.       Roy Shultis Director, Publications Division