| September 18, 1990 | |
| Appeals and Referral Division | B. Buetow |
| Technical Review Section | |
| Attention: James E. Nordin | Technical Publications |
| Division | |
| 957-9226 | |
| EACC9708 |
Subject: Omi Gupta Adverse Decision of the Tax Court
The taxpayer, a surgeon in Edmonton, reported a capital loss in 1983 on commodity transactions and income losses in 1984 and 1985 on such transactions. The Tax Court of Canada decided against the Department. It had assessed capital losses for 1984 and 1985. The basis for the judicial decision was that Dr. Gupta was engaged in an Adventure in the Nature of Trade.
This decision is in conflict with IT-346R which provides for speculators (paragraph 6) the choice of reporting wither on income or capital account provided such reporting is maintained in all subsequent years (paragraphs 7, 8)
21(1)(b) 23
Unlike shares, bonds or rental properties, commodities cannot yield income except when sold and contracts are bought to that end. This differs from assets such as paintings which can be bought to be owned and enjoyed.
24(1)
B. BuetowChiefTechnical Review SectionTechnical Publications Division
c.c. Roy ShultisB. Bryson