A. FACTS
PART I - STATEMENT OF FACTS
Except as is expressly admitted herein, the Respondent does not admit the Statement of Facts as stated in the Appellants' Memorandum of Fact and Law.
- The following are the facts supported by the evidence given at the hearing of the Appellants' appeal with respect to the matters referred to by the Appellants in their Memorandum of Fact and Law.
FACTS.
- On May 23, 1997, the Appellant, R. J. Miller & Associates (1986) Ltd. ("Corporation ") filed a Notice of Appeal in respect of reassessments dated February 24, 1997 "reflecting Interim Assessments" dated August 25, 1995, August 24, 1995 and October 2, 1995 for its taxation years ending February 28, 1992, 1993 and 1994, respectively (Notice of Appeal, Appeal Book, Vol. 1, page 36). Certificate of Service, appeal Book, vol. 1, page 50
- Following the Order of Bowie, T.C.J signed August 6, 1997, the Corporation filed a Fresh As Amended Notice of Appeal again appealing from reassessments dated February 24th, 1997 "reflecting Interim Assessments" dated August 25, 1995 for its...
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I: STATEMENT OF FACTS
In 1992 R. J. Miller and Associates acquired interest in a computer program. Miller assessed those interests at $100,000 and depreciated them over a two-year period.
II: ISSUE
The issue is whether Mr. Miller's interest in the program was really worth $100,000 when he transferred it to his company.
III. BACKGROUND
Ronald Miller and James Webber developed a software program that Mr. Miller used in his wife's law practice. The program was designed to track billable hours, work in progress, and disbursements, and to assist in file management.
By December of 1992 the program was up and running, but it was not marketable because it would crash without warning. In fact, the only firm using the program was Mrs. Miller's.
At the same time, Ronald Miller owed his company, R. J. Miller and Associates, a substantial amount of money. On the advice of an accountant, he transferred his 50% interest in the software program to his company for a credit against his debt. The company then assessed this interest at $100,000 and depreciated it to zero over two years.
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