Sutcliffe v. The Queen, 2006 TCC 581

Docket: 2001-2556(IT)G

BETWEEN:

MARK SUTCLIFFE,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

_______________________________________________________________

Appeal heard on February 2 to 10, February 16 and May 4, 2005 at Ottawa, Ontario

By: The Honourable Justice Judith Woods

Appearances:

_______________________________________________________________

JUDGMENT

It is ordered that the appeal with respect to assessments made under the Income Tax Act for the 1996, 1997 and 1998 taxation years is allowed, and the assessments are referred back to the Minister of National Revenue for reconsideration and reassessment on the basis that the amounts of income reasonably attributable to duties of employment performed outside of Canada by the appellant during each relevant taxation year on the routes identified in the Reasons for Judgment are the following percentages of the total income earned by the appellant for flying each flight as shown on the detailed time pay summaries filed as evidence at the hearing of the appeal:

Halifaxto Toronto         22%

Toronto to Halifax         51%

Montreal to Toronto      0%

Toronto to Montreal      11%

Vancouver to Toronto 31%

Toronto to Vancouver 49%

          There will be no order as to costs.

          Signed at Toronto, Ontario, this 24^th day of October, 2006.

"J. Woods"

ADDENDUM TO REASONS FOR JUDGMENT

Woods J.

[1]      Further to my Reasons for Judgment issued on December 22, 2005, the parties submitted a letter to the Court dated October 20, 2006 which reads in part as follows:

For the purposes of resolving the outstanding issue in this appeal, the parties agree that the amounts of income reasonably attributable to duties of employment performed outside of Canada by Mr. Sutcliffe during the tax years under appeal on the routes identified by the Court are the following percentages of the total income earned by Mr. Sutcliffe for flying each flight as shown on the detailed time pay summaries filed as evidence at the hearing of the appeal:

Halifax to Toronto                     22%

Toronto to Halifax                     51%

Montreal to Toronto                  0%

Toronto to Montreal                  11%

Vancouver to Toronto             31%

Toronto to Vancouver             49%

[2]      Judgment will be issued in accordance with my earlier reasons and this agreement.

[3]      By further agreement of the parties, there will be no order as to costs.

Signed at Toronto, Ontario, this 24^th day of October, 2006.

CITATION:                                        2006TCC581

COURT FILE NO.:                             2001-2556(IT)G

STYLE OF CAUSE:                           Mark Sutcliffe and Her Majesty the Queen

PLACE OF HEARING:                      Ottawa, Canada

DATE OF HEARING:                        February 2 to 10, February 16 and May 4, 2005

REASONS FOR JUDGMENT BY:     The Honourable Justice Judith Woods

DATE OF JUDGMENT:                     October 24, 2006

APPEARANCES:

COUNSEL OF RECORD:

       For the Appellant:

                   Name:                              Claude-Alain Burdet

                   Firm:                                Viele Burdet

                                                          Ottawa, Canada

       For the Respondent:                     John H. Sims, Q.C.

                                                          Deputy Attorney General of Canada

                                                          Ottawa, Canada