Date: 20091116
Docket: A-52-09
Citation: 2009 FCA 329
CORAM: BLAIS C.J.
NOËL J.A.
TRUDEL J.A.
BETWEEN:
WALTER
STURZER
Appellant
and
HER
MAJESTY THE QUEEN
Respondent
Heard at Montréal,
Quebec, on November 16,
2009.
Judgment delivered from the Bench at Montréal, Quebec, on November 16, 2009.
REASONS FOR JUDGMENT OF THE COURT BY: NOËL
J.A.
Date:
20091116
Docket: A-52-09
Citation:
2009 FCA 329
CORAM: BLAIS
C.J.
NOËL
J.A.
TRUDEL
J.A.
BETWEEN:
WALTER
STURZER
Appellant
and
HER MAJESTY
THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE
COURT
(Delivered
from the Bench at Montréal, Quebec, on November 16, 2009)
NOËL J.A.
[1]
This is an appeal
from a decision rendered by Bédard J. of the Tax Court of Canada (the Tax Court
Judge) wherein he dismissed Walter Sturzer’s (the appellant) appeal for
reassessments made by the Minister of National Revenue (the Minister) with
respect to his 2000, 2001 and 2002 taxation years.
[2]
The appellant has
been a Canadian resident within the meaning of the Income Tax Act,
R.S.C. 1985, c. 1 (5th Supp.) (the Act) since March 16, 1989. He was
the sole shareholder of two domestic corporations involved in video poker
gambling operations until both dissolved in July 1997.
[3]
The appellant went bankrupt
on December 24, 1997 and was discharged from this bankruptcy on September 24,
1998.
[4]
In 2000, the
appellant bought vacant land in the municipality of Morin Heights, Quebec for $150,000. From 2000 to 2002, he disbursed $1,538,683
for the construction of a residence on this land.
[5]
The income reported
by the appellant for the relevant taxation years was $52,000, $41,000 and
$45,000 for the year 2000, 2001 and 2002 taxation years respectively.
[6]
Using the net worth
method, the Minister estimated that the appellant had failed to report $213,155,
$1,132,169 and $626,649 of business income for the three taxation years in
issue. Reassessments were issued on that basis and a penalty was imposed for
failure to disclose the income in question.
[7]
The appellant
challenged these reassessments on the basis that the increases in his net worth
could be explained by gifts from his father and loans or advances from an
Austrian Bank and a foreign company whose head office is in Liechtenstein.
[8]
The Tax Court Judge
rejected the explanation given by the appellant for the increases in his net
worth on the basis that he was not credible. He found the appellant’s testimony
to be vague, imprecise and contradictory. The Tax Court Judge also placed
considerable reliance on the fact that the appellant was in a position to
produce corroborative evidence, but did not do so.
[9]
Counsel for the
appellant asserts that the Tax Court Judge made a variety of errors in his
assessment of the evidence.
[10]
Having considered the
evidence, we are unable to conclude that the Tax Court Judge committed any of
the alleged errors.
[11]
The appeal will be
dismissed with costs.
“Marc Noël”
FEDERAL COURT OF APPEAL
NAMES OF COUNSEL AND
SOLICITORS OF RECORD
DOCKET: A-52-09
(APPEAL FROM A JUDGMENT OF THE HONOURABLE
JUSTICE BÉDARD OF THE TAX COURT OF CANADA DATED JANUARY 8, 2009, NO. 2006-3362(IT)G.)
STYLE OF CAUSE: Walter
Sturzer and Her Majesty the Queen
PLACE OF HEARING: Montréal,
Quebec
DATE OF HEARING: November 16, 2009
REASONS FOR JUDGMENT OF THE
COURT BY: BLAIS C.J.
NOËL J.A.
TRUDEL J.A.
DELIVERED FROM THE BENCH BY: NOËL
J.A.
DATED: November 16, 2009
APPEARANCES:
|
Serge Fournier
|
FOR
THE APPELLANT
|
|
Benoit Mandeville
|
FOR
THE RESPONDENT
|
SOLICITORS OF RECORD:
|
BCF s.e.n.c.r.l.
Montréal, Quebec
|
FOR
THE APPELLANT
|
|
John H. Sims, Q.C.
Deputy
Attorney General of Canada
Montréal,
Quebec
|
FOR
THE RESPONDENT
|
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