Docket: 2012-2198(GST)I
BETWEEN:
SYLVAIN DESCHAMPS,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
[OFFICIAL ENGLISH
TRANSLATION]
____________________________________________________________________
Appeal
heard on March 3, 2014, at Ottawa, Canada.
Before: The Honourable
Justice Paul Bédard
Appearances:
|
For the appellant:
|
The appellant himself
|
|
Counsel for the respondent
|
Nicolas C. Ammerlaan
|
____________________________________________________________________
JUDGMENT
The appeal from the assessments made pursuant
to Part IX of the Excise Tax Act regarding the goods and services tax for
the periods of October 1, 2004, to December 31, 2004, and October 1, 2005, and
December 31, 2005, is dismissed in accordance with the attached reasons for
judgment.
Signed at Ottawa, Canada, this 28th day of May 2014.
"Paul Bédard"
Translation certified true
on this 15th day of July 2014.
Elizabeth Tan,
Translator
Citation: 2014 TCC 181
Date: 20140528
Docket: 2012-2198(GST)I
BETWEEN:
SYLVAIN DESCHAMPS,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
[OFFICIAL ENGLISH
TRANSLATION]
REASONS FOR JUDGMENT
Bédard J.
[1]
The appellant is
appealing from two assessments dated June 16, 2009, made pursuant to Part IX of
the Excise Tax Act (ETA), one of which is for the period of October 1,
2004, to December 31, 2004, and the other for the period of October 1, 2005, to
December 31, 2005 (the periods in question).
Appellant's testimony
[2]
In 2004 and 2005, the
appellant was a self-employed construction worker. During the first quarter of
2004, the appellant rendered services to the company Durabuilt Construction
(Durabuilt). Durabuilt had required him to have a goods and services tax (GST)
registration number. The appellant met this requirement and obtained his GST
registration number. The appellant completed and filed a first net tax return
for this first quarter, in which the GST collected and input tax credits (ITC)
claimed were reported. Then, the appellant rendered services to another
company, which did not require him to have a GST registration number. After
that, the appellant completed and filed his net tax returns indicating he did
not collect GST. The appellant explained that he did so in accordance with the
recommendations of an Agence du revenu du Québec (ARQ) employee.
[3]
Moreover, the evidence
showed that:
(i)
during the periods in
question, the appellant was a registrant pursuant to Part IX of the ETA. The
registration was cancelled on September 31, 2006;
(ii)
during the period of
April 1, 2004, to December 31, 2004, the appellant reported income of $22,237
from a taxable commercial activity;
(iii)
during the period of
January 1, 2005, to December 31, 2005, the appellant reported income of $36,881 from
a taxable commercial activity;
(iv)
all the supplies made
by the appellant during the commercial activities conducted during the periods
in question constituted taxable supplies;
(v)
to determine the amount
of GST the appellant collected or was required to collect for the periods in
question, the amount of taxable supplies made by the appellant was established
based on the income the appellant reported in his tax returns. In this case,
the Minister used the quick method to establish the amounts the appellant owed.
I note that the quick method is a simple method by which small businesses
calculate the GST they must remit instead of calculating the tax collected on
sales and the tax paid for purchases as the usual GST system requires; under
the quick method, the registrant calculates the net tax owing simply by
multiplying the taxable supplies made in Canada, GST included, by the
prescribed quick method remittance rate.
Appellant's argument
[4]
Essentially, the
appellant is not challenging the assumptions of fact on which the Minister
based his assessment. He feels I should allow this appeal because he did not
understand the ETA system and because he had been misinformed by the ARQ.
Lastly, the appellant argues that the Minister's use of the quick method to
determine the amount of the net tax to remit for the periods in question was
unfavourable to him.
Analysis and conclusion
[5]
In this case, all the
supplies made by the appellant during the commercial activities of the business
he operated during the periods in question constituted taxable supplies for
which GST was payable by the recipients to the appellant, who was to collect
it. He neglected to collect $2,624.87 in GST from the recipients, which he was
to do pursuant to sections 165 and 221 of the ETA. The appellant did not
include this amount of GST payable in the calculation of the net tax he
reported to the Minister for the periods in question, which he was to do
pursuant to sections 221, 225 and 228 of the ETA. The appellant's ignorance as
to how the ETA works is not a valid reason to allow his appeal. The fact an
employee from the ARQ misled the appellant cannot be accepted by the Court and
is not a valid reason to allow his appeal. The Court is required to apply the
provisions of the ETA adopted by Parliament, and not public servants'
interpretation of it. If the appellant had truly been misled by an ARQ employee,
the Court cannot do anything other than advise the appellant to take action
against the ARQ representatives who allegedly misled him if he feels they
pushed him to make decisions that caused him harm. I would add that, in cases
where a taxpayer was misled, the Minister might exercise his discretionary
power and waive the interest imposed pursuant to a request for relief. Lastly,
I must find that the quick method the Minister used was not unfavourable to the
appellant, since the appellant did not provide any evidence to support this
argument.
[6]
Additionally, I would
note that the appellant did not challenge the interest and penalties
established pursuant to section 280 of the ETA.
[7]
For these reasons, the
appeal is dismissed.
Signed at Ottawa, Canada, this 28th day of May 2014.
"Paul Bédard"
Translation certified true
on this 15th day of July 2014.
Elizabeth Tan,
Translator
CITATION: 2014 TCC 181
COURT FILE NO.: 2012-2198(GST)I
STYLE OF CAUSE: SYLVAIN DESCHAMPS v. HER MAJESTY THE QUEEN
PLACE OF HEARING: Ottawa, Canada
DATE OF HEARING: March 3, 2014
REASONS FOR
JUDGMENT BY: The Honourable Justice Paul Bédard
DATE OF JUDGMENT: May 28, 2014
APPEARANCES:
|
For the
appellant:
|
The appellant himself
|
|
Counsel for the respondent:
|
Nicolas C.
Ammerlaan
|
COUNSEL OF RECORD:
For the appellant:
Name:
Firm:
For the respondent: William F. Pentney
Deputy
Attorney General of Canada
Ottawa,
Canada
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