- The reasons and judgment of the Federal Court of Appeal in Brown v. Canada, 2022 FCA 200 are appealed to the Bowman Moot Court for Tax Appeals.
- The questions in issue on appeal are:
Question A
What is the proper framework for determining whether there is a source of business or property income for the purposes of section 9 of the Income Tax Act, R.S.C., 1985, c. 1 (5th Supp.) (the “Act”)? Notably:
i. Can a person’s personal motivation or reason for conducting an activity be sufficient to support a finding that there is a personal or hobby element to the activity?
ii. In the absence of a personal or hobby element, to what extent – if any – should pursuit of profit be considered in determining whether there is a source of income?
Question B
Was Mr. Brown’s management services activity for the art gallery properly characterized as a source of income for the purposes of the Act? - All other issues raised before the Tax Court of Canada and the Federal Court of Appeal are not appealed.
- The Moot is intended to promote advocacy pertaining to tax related issues, not to questions relating to administrative law or the standard of review. Participants are expected to make very short written submissions and refer the judges to their factum when they state orally the applicable standard of review. We have done our best to inform the judges that the standard of review is not at issue and have advised them to refrain from asking any questions pertaining to it.
- 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.
View Dentons’ capabilities on
Tax in Canada