Donald G.H. Bowman National Tax Moot
2017 – MOOT PROBLEM
Issued: NOVEMBER 14, 2016
1. The reasons and judgment of the Federal Court of Appeal in Kruger Inc. v The Queen (2016 FCA 186) are appealed to the Bowman Supreme Moot Court for Tax Appeals.
2. The questions in issue on appeal are:
A. Is the mark-to-market method acceptable for computing an accurate picture of income under section 9 of the Income Tax Act? Did the Court of Appeal err in permitting the taxpayer to use that method in these circumstances?
B. Are the purchased options considered ‘inventory’ under the Income Tax Act? If not, did the Court of Appeal err in determining that the purchased options were neither capital property nor inventory?
3. Of all of the issues raised in the reasons given by the Federal Court of Appeal, only those with respect to the (i) the use of the mark to market method and the computation of income under section 9 of the Income Tax Act and (ii) the property classification of purchased options are to be addressed by counsel for the parties in their written and oral submissions. Arguments not referenced in the reasons of the courts may be advanced by counsel in their submissions but only as they relate to the above-noted issues.
4. The courts have jurisdiction over all issues raised in the decision.
5. The moot problem is an actual case, and therefore the parties’ factums are to be original works, as opposed to any copy or mere imitation of existing filed court materials.