MacKay v. Canada, 2015 FCA 94, aff'g 2014 DTC 1059 [at 2959], 2014 TCC 33 -- summary under Subsection 34.1(1)

By services, 28 November, 2015

The taxpayer's dentistry practice had a January 31 fiscal year end. His practice income increased dramatically from his 2005 to 2006 fiscal year, and fell again for 2007. Accordingly, his taxable income for his 2006 taxation year was "extremely high relative to the actual income earned for any 12 month period" (para. 11), as he had an addition of 11/12 of his income for fiscal 2006 and a deduction of 11/12 of the much lower income for fiscal 2005.

In rejecting a submission that this represented a harsh result, Woods J noted that the effect reversed in the following year – and in any event "it is well established that this Court cannot grant relief on grounds only that the result is harsh: Lans v The Queen, 2011 FCA 290."

Ryer JA added (at FCA para. 3, quoting Chaya, 2004 FCA 327, at para. 4): "The Court must take the statute as it finds it."

Topics and taglines
Topic
Income Tax Act - s. 34.1(1)
Tagline
no relief for "harsh" (timing difference) consequences
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
337844
Extra import data
{
"field_legacy_header": "<strong><em>MacKay v. The Queen</em></strong>, 2015 FCA 94, aff'g 2014 DTC 1059 [at 2959], 2014 TCC 33 <strong>[no relief for \"harsh\" (timing difference) consequences]</strong>",
"field_override_history": false,
"field_sid": "",
"field_topic_category": ""
}