Citation: 2009TCC380
2008-2614(IT)I
BETWEEN:
HENRI WITTMANN,
APPELLANT,
AND
HER MAJESTY THE
QUEEN,
RESPONDENT.
TRANSCRIPT
OF REASONS FOR JUDGMENT
Let the attached certified copy
of the Reasons for Judgment delivered orally from the Bench at Shawinigan, Quebec, on May 15,
2009, be filed.
"François
Angers"
Angers J.
Signed at Edmunston,
New Brunswick, this 4th day of August 2009.
on
this 25th day of September 2009
Margarita Gorbounova, Translator
TAX
COURT OF CANADA
RE
INCOME TAX ACT
2008-2614(IT)I
BETWEEN: HENRI WITTMANN
Appellant
-and-
HER MAJESTY THE QUEEN
Respondent
[OFFICIAL ENGLISH
TRANSLATION]
Held before the Honourable Justice FRANÇOIS ANGERS,
Tax Court of Canada, Shawinigan, Quebec, on May 15, 2009.
--------------------
REASONS
FOR JUDGMENT
APPEARANCES:
HENRI WITTMANN
for himself.
Nancy
Dagenais
for the respondent.
Registrar/Technician: Nicole Champagne
RIOPEL,
GAGNON, LAROSE & ASSOCIÉS
215
Saint-Jacques St.
Suite
328
Montréal,
Quebec
H2Y 1M6
IT-5288 per: JEAN
LAROSE
START OF REASONS
FOR JUDGMENT:
HIS HONOUR: But it's not
lost; it's just that you have to pay tax on it. That is what it means: that
money is not lost, except that RRSPs are a sort of deferred income, if you’d
like; you don't pay tax as long as you qualify for the RRSP amount that you can
deposit per year. It's deferred tax, if you'd like.
But I… what you are asking me, I cannot… I have
no jurisdiction to do that. You
will have to make changes to your tax return and submit it to Revenue Canada. Then, a decision will be issued, and you will appeal that decision.
But if those are not the things…
HENRI WITTMANN: So I should redo this one.
HIS HONOUR: No, I'm not even
telling you what to do; it's not my… It's not up to me to give you advice. All I'm saying is, if
the assessment before me is the way it is described in the Reply to the Notice
of Appeal, and you do not object to it, then there is nothing I can do but
dismiss your appeal. If you have other
submissions to make to Revenue Canada concerning the 2003
taxation year, make them.
HENRI WITTMANN: So I'm starting from
scratch.
HIS HONOUR: Well, start from
scratch, but if you want to defer that income in some way through accounting,
you say that any accountant could do it, so consult one. Then submit it to
Revenue Canada, and they will give you a decision or a
determination or an assessment. Then, if you don't agree, you will appeal it.
And then we might be able to deal with this issue. But at the moment, that's
not what is before me. What is before me is an assessment that you do not
object to. So, at the moment, I have no jurisdiction to do anything other than
process it. But then, you don't object to it, so there is nothing I can do.
So if you think that you can correct this in
some other way so that you don't have to pay tax on the portion of expenses
that was disallowed, because I imagine that, at first, you thought that all of
them were going to be allowed and there wouldn’t be any tax to pay…
HENRI WITTMANN: No, I wouldn't have taken
out the RRSPs.
HIS HONOUR: Well, maybe you
wouldn’t have taken out the whole amount; you might have left the $16,000 in
there, okay.
HENRI WITTMANN: Yes, that's right.
HIS HONOUR: Yes, listen, but if the
expenses you claimed are incorrect with respect to the Income Tax Act,
well, then they make up a surplus that becomes taxable.
HENRI WITTMANN: Hard to predict.
HIS HONOUR: Well, I understand that, but
listen, claiming $15,000 as an expense to begin with… I mean you should have
thought about it. Okay. We
don't deduct tax as an expense; that would be too much fun. Okay. So I cannot
do more than that, Mr. Wittmann.
HENRI WITTMANN: All right.
HIS HONOUR: Okay. The appeal is thus
dismissed.
END OF REASONS FOR JUDGMENT
on this 25th day of September 2009
Margarita Gorbounova, Translator
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