98-43(IT)I
BETWEEN:
GARY MOUGHTIN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Appeals heard on June 3, 1998 at Victoria, British Columbia, by
the Honourable Judge D.W. Beaubier
Appearances
For the Appellant: The Appellant himself
Counsel for the Respondent: David R. Poore
JUDGMENT
The appeals from the reassessments made under the Income Tax Act for the 1995 and 1996 taxation years are dismissed.
Signed at Ottawa, Canada this 16th day of June 1998.
|
"D.W. Beaubier" |
J.T.C.C.
Date: 19980616
Docket: 98-43(IT)I
BETWEEN:
GARY MOUGHTIN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
(Delivered orally from the bench
at Victoria, British Columbia, on
June 4, 1998)
Beaubier, J.T.C.C.
[1] This appeal pursuant to the Informal Procedure was heard at Victoria, British Columbia, on June 3, 1998. The Appellant was the only witness.
[2] Paragraphs 12 and 13 of the Reply to the Notice of Appeal read:
12. By Notices dated February 27, 1997, the Minister of National Revenue (the "Minister") reassessed the Appellant for the 1995 taxation year to include in employment income the amount of $12,250.00 referred to herein and to levy the penalties in the amount of $1,640.46 pursuant to subsection 163(2) of the Income Tax Act (the "Act"). The return for the 1996 taxation year was assessed as filed.
13. In so reassessing the Appellant, the Minister made the following assumptions of fact:
(a) the Appellant was employed by the Employer in the 1995 and 1996 taxation years;
(b) the Appellant received employment income from the Employer in the amounts of $12,250.00 and $12,000.00 in the 1995 and 1996 taxation years respectively;
(c) the Appellant did not include in employment income in the amount of $12,250.00 when computing his income for the 1995 taxation year;
(d) the Appellant included employment income in the amount of $12,000.00 without a T4 slip when computing his income for the 1996 taxation year; and
(e) the Appellant knowingly or under circumstances amounting to gross negligence made an omission in his return of income by not reporting the employment income in the amount of $12,250.00 in respect of the 1995 taxation year within the meaning of subsection 163(2) of the Act and penalties were properly calculated and levied.
[3] The assumptions in paragraph 13 are correct. In about March, 1996 the Appellant spoke to his employer's accountant, who asked him to sign loan papers respecting the $12,250.00 he had received from his employer in 1995. The Appellant refused.
[4] The Appellant was of the view that he had received wages in 1995. In his opinion it should have been $4,000.00 per month including withholdings. He was paid the $12,250.00 in 1995, but there were no withholdings. Nonetheless, the Appellant did not report either sum in his 1995 income tax return, nor did he file an amended 1995 return, although at all times he considered them wages and actively continued to take that position throughout 1996.
[5] It remains his position but he believes that his employer should have paid the withholdings that represent the difference between $4,000.00 per month and approximately $3,000.00 per month.
[6] Thus, on the evidence, the Appellant deliberately and knowingly failed to report the income in question contrary to section 150 of the Income Tax Act.
[7] Therefore he is liable for the penalties assessed under section 163(2) of the Income Tax Act.
[8] The appeal is dismissed.
Signed at Ottawa, Canada this 10th day of November 1998.
|
"D.W. Beaubier" |
J.T.C.C.
COURT FILE NO.: 98-43(IT)I
STYLE OF CAUSE: Gary Moughtin and The Queen
PLACE OF HEARING: Victoria, British Columbia
DATE OF HEARING: June 3, 1998
REASONS FOR JUDGMENT BY: The Honourable Judge D.W. Beaubier
DATE OF JUDGMENT: June 16, 1998
APPEARANCES:
For the Appellant: The Appellant himself
Counsel for the Respondent: David R. Poore
COUNSEL OF RECORD:
For the Appellant:
Name:
Firm:
For the Respondent: Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada