Date:
20121211
Docket:
A-482-11
Citation: 2012
FCA 328
CORAM: BLAIS C.J.
PELLETIER J.A.
TRUDEL J.A.
BETWEEN:
STÉPHANE GAGNON
Appellant
and
HER MAJESTY THE QUEEN
Respondent
Heard
at Québec, Quebec, on December 10, 2012.
Judgment
delivered at Québec, Quebec, on December 11, 2012.
REASONS FOR JUDGMENT BY: TRUDEL
J.A.
CONCURRED IN BY: BLAIS
C.J.
PELLETIER
J.A.
Date: 20121211
Docket:
A-482-11
Citation: 2012
FCA 328
CORAM: Blais
C.J.
PELLETIER
J.A.
TRUDEL
J.A.
BETWEEN:
STÉPHANE
GAGNON
Appellant
and
Her Majesty the Queen
Respondent
REASONS
FOR JUDGMENT
TRUDEL
J.A.
[1]
Mr. Gagnon is appealing a decision of the Tax Court of
Canada (2011 TCC 480) allowing in part his appeals against reassessments for
his 2003 and 2004 taxation years. The judge referred the reassessments back to
the Minister for reconsideration and reassessment on the basis that the
business income determined by the net worth method is $28,561.69 for 2003 and $22,478.24
for 2004 and that the penalties must be adjusted accordingly.
[2]
Mr. Gagnon submits that the judgment under appeal contains
errors. First, the net worth method was not necessary in the present case
because all the documents needed in order to assess by the direct method, that
is, by analyzing his business income less expenses, had been provided to the
auditor. According to Mr. Gagnon, the auditor did in fact apply the direct
method, as she reviewed all of the bank accounts and the transactions on those
accounts, but she then applied the net worth method to the resulting data.
[3]
According to Mr. Gagnon, it was not even necessary to
assess his credibility in order to accept his argument, since the facts put in
evidence by the respondent were sufficient proof that it was well-founded.
Accordingly, the judge should have found that Mr. Gagnon
had demolished the Minister’s assumptions of fact and thus reversed the burden
of proof.
[4]
Finally, Mr. Gagnon submits that the judge erred in
basing his decision on an assumption of fact different from the assumptions of
the Minister. In this regard, he points to paragraph 33 of the judge’s
reasons.
[5]
I am of the view that this appeal cannot succeed. The
evidence adduced was such as to enable the judge to accept the net worth method
and find that Mr. Gagnon had not discharged his burden of proof. I also note
that the judge was satisfied both that the audit had been properly performed
and that Mr. Gagnon had been treated fairly in the investigation process.
[6]
Despite the judge’s sketchy reasons and the sustained
efforts of Mr. Gagnon’s counsel to convince us otherwise, I have not been
persuaded that the judge erred in principle or committed any other error
justifying the intervention of this Court.
[7]
Accordingly, I would dismiss this appeal with costs.
“Johanne Trudel”
“I agree.
Pierre Blais C.J.”
“I agree.
Denis Pelletier J.A.”
Certified true translation
Erich Klein
FEDERAL COURT OF APPEAL
SOLICITORS OF RECORD
Docket: A-482-11
STYLE OF CAUSE: STÉPHANE GAGNON v.
Her Majesty the
Queen
PLACE OF HEARING: Québec,
Quebec
DATE OF HEARING: December
10, 2012
REASONS FOR JUDGMENT BY: TRUDEL J.A.
CONCURRED IN BY: Blais C.J.
PELLETIER J.A.
DATED: December
11, 2012
APPEARANCES:
|
Guylaine Gauthier
|
FOR THE APPELLANT
|
|
Simon-Nicolas Crépin
|
For the Respondent
|
SOLICITORS OF RECORD:
|
Gauthier Avocats
Quebec City, Quebec
|
FOR THE APPELLANT
|
|
William F. Pentney
Deputy
Attorney General of Canada
|
For the Respondent
|
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