Rouse v. The Queen, docket 2002-773(IT)I (Informal Procedure)

Date: 20020906

Docket: 2002-773-IT-I

BETWEEN:

ALEXANDRA JUNE ROUSE,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

Reasons for Judgment

Little, J.

A.             FACTS

[1]            In the 1998 and 1999 taxation years the Appellant was employed by Pearce Holdings Ltd. Pearce Holdings Ltd. operated under the name of Lynn Valley Meats ("Lynn").

[2]            The Appellant filed her income tax returns reporting income received from Pearce Holdings Ltd. as follows:

                                1998                         -                $6,173.80

                                1999                         -                $5,106.43

(Note: T-4 slips were issued by Pearce Holdings Ltd. for the Appellant showing the income reported by the Appellant.)

[3]            The Minister of National Revenue (the "Minister") issued Notices of Assessment for the Appellant's 1998 and 1999 taxation years in which the Minister accepted the income that was reported by the Appellant.

[4]            The Appellant filed Notices of Objection to the Notices of Assessment issued for the 1998 and 1999 taxation years. Officials of the Canada Customs and Revenue Agency ( the "C.C.R.A.") carried out a detailed analysis of the payroll records of Lynn and determined that a correction should be made. By Notice of Reassessment dated the 14th day of November 2000 the Minister reduced the Appellant's income for the 1998 taxation year by the amount of $511.90. The Minister also issued an amended T-4 slip in which it was stated that the Appellant had received income of $5,661.90 rather than $6,173.80 from Pearce Holdings Ltd. in the 1998 taxation year.

[5]            The Appellant filed a Notice of Appeal to the Tax Court for the 1998 and 1999 taxation years.

[6]            During the hearing of the appeals the Appellant admitted that she had signed receipts showing the payments received by her from Lynn.

[7]            The Appellant also introduced as evidence copies of what are described as PD Examinations (Exhibit A-3 and Exhibit A-4) prepared by officials of C.C.R.A. Exhibit A-3 prepared by J. Schneider covers the period from January 1, 1997 to August 31, 2000. Exhibit A-4, prepared by Mr. M. Rowlands, covers the period from January 1, 1999 to December 31, 1999. Exhibit A-3, prepared by J. Schneider, of the C.C.R.A., contains the following statement:

Everytime the employee received his or her wage in cash the employee would countersign the slip of paper as a form of proof that the wage was indeed paid. Problems arose as some slips were not countersigned and as such the employee is claiming those wages were not paid. The books were reviewed and the employer could not provide supporting documentation that those wage amounts were paid and as such those wage amounts were removed from the total 74 amount thereby resulting in a downward adjustment in the T-4 and some employer credits. A detailed journal for A. Rouse was prepared showing all her wage payments and how the amended T-4s were calculated.

[8]            Mr. Michael Rowlands, an official of the C.C.R.A., testified at the hearing. Mr. Rowlands stated that he had prepared the PD Examination for 1999 (Exhibit A-4). Mr. Rowlands testified that he had reviewed all of the receipts signed by the Appellant and prepared detailed calculations. Mr. Rowlands said that according to his calculations the Appellant received total income of $5,104.43 from Lynn in 1999.

B.             ISSUE

[9]            Has the Minister correctly calculated the income received by the Appellant from Lynn in the 1998 and 1999 taxation years?

C.             ANALYSIS

[10]          During the hearing the Appellant was unable to point to any particular number or record or document to establish that officials of the C.C.R.A. were incorrect in their calculation of her income for the 1998 and 1999 taxation years. I am satisfied that the Minister is correct in his determination that the Appellant received the following income:

                                                                                                1998                                         1999

                  Income                                                                       $5,661.90                                 $5,104.43

[11]          The appeals are dismissed.

Signed at Vancouver, British Columbia, this 6th day of September 2002.

"L.M. Little"

J.T.C.C.

COURT FILE NO.:                                                 2002-773(IT)I

STYLE OF CAUSE:                                               Alexandra June Rouse and

                                                                                                Her Majesy the Queen

PLACE OF HEARING:                                         Vancouver, British Columbia

DATE OF HEARING:                                           August 6, 2002

REASONS FOR JUDGMENT BY:      The Honourable Judge L.M. Little

DATE OF JUDGMENT:                                       September 6, 2002

APPEARANCES:

For the Appellant:                                                 The Appellant herself

Counsel for the Respondent:              Michael Taylor

COUNSEL OF RECORD:

For the Appellant:                

Name:                               

Firm:                 

For the Respondent:                             Morris Rosenberg

                                                                                Deputy Attorney General of Canada

                                                                                                Ottawa, Canada

2002-773(IT)I

BETWEEN:

ALEXANDRA JUNE ROUSE,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

Appeals heard on August 6, 2002 at Vancouver, British Columbia, by

the Honourable Judge L.M. Little

Appearances

For the Appellant:                                                 The Appellant herself

Counsel for the Respondent:              Michael Taylor

Judgment

                The appeals from the assessments made under the Income Tax Act for the 1998 and 1999 taxation years are dismissed in accordance with the attached Reasons for Judgment.

Signed at Vancouver, British Columbia, this 6th day of September 2002.

"L.M. Little"

J.T.C.C.