Précis: Ms. Gibb has a passionate interest in horses and ran a horse farm operation for 30 years. She showed losses in all of those years except in 2003 she reported net farming income of $1,250 and in 2008 she reported nil net farming income. In 2010 and 2011 CRA denied her GST Input Tax Credits on the basis that her horse operation had no reasonable expectation of profit. She appealed to the Tax Court. The Tax Court, while sympathetic to her position, dismissed her appeal. There was no order as to costs since this was an informal procedure appeal.
Gibb v. R. - TCC: Taxpayer had no reasonable expectation of profit from horse operation - no ITCsREAD MORE »