[1] In this application, the Tax Court Judge held that the applicant failed to prove that he was a small business supplier, that is, that he supplied services valued at less than $30,000 annually as to be exempt from collecting G.S.T.

[2] In doing so, the Tax Court Judge stated that there was no cogent evidence that the $30,000 figure had not been exceeded. He said there was only "vague general statements" about this fact.

[3] Actually, Exhibit A-2, an affidavit of a Mr. Sehmi, who was the lessee of the taxi cab, had been properly introduced into evidence (the same document as A-6 in A-212-02). That affidavit by the lessee stated that the annual rent he paid for the use of the taxi cab was between $14,000 and $15,000. This was cogent evidence, properly introduced, that was not "vague" or "general" but it was completely ignored by the Tax Court Judge.

[4] The estimate by the Departmental Assessor of the annual rental income from the taxi cab, based on the net worth method, ranged from approximately $49,000 to $74,000 annually.

[5] Based on the submissions of counsel for the applicant, we agree that these figures, based on the "blunt instrument" of the net worth calculation were questionable in the circumstances of this case.

[6] We therefore will allow the application for judicial review, set the Tax Court Judge's decision aside and remit the matter to the Tax Court Judge for redetermination. It will be open to the parties to adduce further evidence of the market value of taxi licence rentals and about any other matters that are considered advisable.

[7] Costs to the applicant for both matters will be $7,000 inclusive of disbursements and G.S.T.

"A. M. Linden"

J.A.

FEDERAL COURT OF APPEAL

Names of Counsel and Solicitors of Record

DOCKET: A-213-02

STYLE OF CAUSE: SATYA PAL

Applicant

- and -

HER MAJESTY THE QUEEN

Respondent

PLACE OF HEARING: TORONTO, ONTARIO

DATE OF HEARING: MONDAY, MAY 5^th, 2003

REASONS FOR JUDGMENT

OF THE COURT BY: LINDEN J.A

DATED: TUESDAY MAY 6^th , 2003

DELIVERED FROM THE BENCH AT TORONTO, ONTARIO ON MAY 5, 2003.

APPEARANCES BY: James McReynolds

For the Applicant

Elizabeth Chasson

Brent Cuddy

For the Respondent

SOLICITORS OF RECORD: Solmon Rothbart Goodman LLP

Barristers and Solicitors

Toronto, Ontario

For the Applicant

Morris Rosenberg

Deputy Attorney General of Canada

For the Respondent

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Pal v. Canada, 2003 FCA 208

Citations2003 FCA 208

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2003 FCA 208