Rip,
J.T.C.C.
(orally):—Mr.
Papp.
MR.
PAPP:
Yes,
Your
Honour.
HIS
HONOUR:
In
Toronto
on
September
23
your
case
was
called
and
your
case
started
and
you
gave
some
evidence
that
you
were
an
instrument
control
technician
and
you
owned
two
companies
being
Papp
T.V.
&
Appliance
and
Cosmopolitan
Travel
and
you
started
off
with
a
1983
tax
appeal
claiming
the
amount
of
$4,245
ought
to
be
allowed
for
advertising
and
promotion.
At
the
time
you
were
explaining
the
case
I
came
to
the
conclusion
that
you
did
not
comprehend
the
situation,
you
appeared
to
be
mixing
up
charitable
donations
and
business
expenses
and
I
had
the
case
adjourned
to
London
today
since
there
was
no
time
slot
available
in
Toronto
and
I
asked
you
to
get
in
touch
[with]
a
lawyer.
MR.
PAPP:
Yes
Your
Honour.
HIS
HONOUR:
So
that
you
would
be
represented
and
would
be
well
advised
so
that
you
don't
suffer
any
prejudice
in
presenting
your
case.
I
am
a
judge,
I
can't
act
for
you,
I
have
to
be
neutral.
MR.
PAPP:
Yes
sir.
HIS
HONOUR:
If
there
is
weakness
in
your
case
perhaps
a
lawyer
could
find
some
strengths.
Have
you
been
in
touch
with
a
lawyer?
MR.
PAPP:
Yes
Your
Honour
I
have.
HIS
HONOUR:
There
is
nobody
here
today
with
you.
MR.
PAPP:
He
has
a
criminal
case.
However,
I
got
legal
advice
from
him
for
all
the
years
in
question
and
he
prepared
me
for
the
Court
so
I
am
prepared
to
go
ahead.
HIS
HONOUR:
Go
ahead
then.
MR.
PAPP:
If
I
may
start
Your
Honour.
HIS
HONOUR:
Will
you
go
to
the
witness
box
please.
MR.
PAPP:
Yes
Your
Honour.
[Arthur
Alexander
Papp,
sworn]
THE
REGISTRAR:
Would
you
state
your
name
in
full
for
the
record
and
spell
your
last
name
please.
THE
WITNESS:
Arthur
Alexander
Papp.
THE
REGISTRAR:
And
your
occupation?
THE
WITNESS:
I
am
an
instrument
and
control
technician
at
the
Steel
Company
of
Canada,
Hamilton,
Ontario.
I
also
own
Papp
T.V.
&
Appliances
and
Cosmopolitan
Travel.
The
business
is
in
Hamilton
also.
THE
REGISTRAR:
And
your
home
address?
THE
WITNESS:
47
Fassett
Avenue,
F-a-s-s-e-t-t,
Hamilton,
Ontario.
THE
REGISTRAR:
When
you
are
giving
your
evidence
please
speak
towards
His
Honour
and
speak
up
so
everyone
can
hear.
THE
WITNESS:
Yes
sir.
HIS
HONOUR:
You
may
go
back
to
the
table.
THE
WITNESS:
Thank
you.
Your
Honour,
as
I
stated
my
name
is
Arthur
Papp
and
I
was
born
in
1942
in
Hungary.
I
emigrated
to
Canada
in
1957
at
age
14.
At
that
time
I
came
alone.
I
attended
high
school
in
Hamilton,
five
years
and
two
years
of
electronic
H.I.T.
Certificate
of
Technology.
In
1962
I
received
a
scholarship
from
the
Steel
Company
of
Canada
and
went
to
school
for
another
5-6
years
and
became
an
Electronic
Control
Technician.
I
have
worked
for
the
company
ever
since
1962
to
the
present
day,
29
years
of
service.
About
1972
with
two
of
my
friends
at
work
we
decided
to
open
up
a
business
called
Papp
T.V.
&
Appliances
on
Barton
Street
in
Hamilton.
We
were
partners
for
about
three
years
and
at
about
that
time
they
retired
from
the
business
because
they
were
not
knowledgeable
in
electronics.
I
am
the
only
one
who
could
repair
and
do
the
calls
and
so
on.
They
asked
me
to
dissolve
the
business
or
if
I
would
like
to
buy
them
out,
which
I
did.
I
bought
them
out
and
I
carried
on
business
myself
and
hired
a
full-time
employee
and
the
business
is
still
operating
today
in
Hamilton,
on
James
Street,
126
James
Street
in
Hamilton.
This
is
briefly
the
history
of
the
T.V.
business
how
we
operated
it.
In
1976,
Your
Honour,
I
opened
up
a
travel
agency,
a
small
agency
in
Hamilton.
I
had
an
appointed
registered
travel
agency
on
153
James
Street
North.
HIS
HONOUR:
The
same
as
Papp
T.V.?
THE
WITNESS:
No
Your
Honour,
this
is
called,
at
the
time
the
travel
agency
called
Papp's
Express
Travel.
HIS
HONOUR:
And
the
address?
THE
WITNESS:
154
James
Street
North
next
door
to
my
travel
agency.
At
the
time
I
operated
for
four
years
approximately
under
the
name
of
Budapest
Express
Travel
and
I
was
getting
my
tickets
and
tour
packages
through
operators
in
Toronto
and
airlines
with
a
50
per
cent
commission
loss,
since
I
was
not
an
I.A.T.A.
appointed
agency.
Just
to
tell
you
what
an
I.A.T.A.
agency
is
Your
Honour.
I.A.T.A.
is
a
name
short
for
International
Airline
Transport
Association.
This
is
the
organization
who
governs
all
the
travel
agencies
with
rules
and
regulations.
So
by
1980
on
the
advice
of
a
C.P.A.
representative
they
asked
me
if
I
should
change
the
name
of
the
agency
to
Cosmopolitan
Travel
because
a
lot
of
people
might
think
I
only
did
travel
to
Hungary
and
maybe
not
to
other
destinations,
and
it
is
possible
to
increase
my
business.
At
that
time,
in
1980,
I
proceeded
to
change
the
name
of
the
business
to
Cosmopolitan
Travel
and
I
have
been
operating
under
that
name
Your
Honour
ever
since
even
up
to
today.
To
the
fact
I
would
like
to
introduce
evidence
to
the
Court
from
the
Minister
of
Consumers
and
Commercial
Relations
as
far
as
the
registration
of
the
name
of
the
business.
HIS
HONOUR:
That
is
not
in
dispute
Mr.
Papp.
THE
WITNESS:
Your
Honour,
it
will
have
something
to
do
with
the
tax
returns
later.
HIS
HONOUR:
Is
there
any
dispute
about
the
name
of
the
company?
MS,
TREMBLAY:
For
the
name,
no
Your
Honour.
HIS
HONOUR:
Are
you
disputing
the
company's
operations?
MS.
TREMBLAY:
Well
it
is
a
company,
what
I
understand
is.
.
.
.
HIS
HONOUR:
Is
Budapest
Travel
a
separate
corporation?
THE
WITNESS:
It
wasn't
a
corporation
Your
Honour
it
was
a
small
proprietorship.
HIS
HONOUR:
Are
you
questioning
that
as
being
a
business
being
carried
on
under
that
name?
MS.
TREMBLAY:
Well,
not
the
name
but
we
don't
agree
that
it
was
not
incorporated.
HIS
HONOUR:
He
says
it’s
not
incorporated.
Are
you
saying
it
was
incorporated?
MS.
TREMBLAY:
Yes
Your
Honour.
HIS
HONOUR:
You
say
it
was
incorporated?
MS.
TREMBLAY:
Yes.
HIS
HONOUR:
Let
us
see
the
certificate
then.
This
is
four
pages,
which
one
are
you
giving
me?
MR.
PAPP:
Your
Honour,
this
one
is
the
licence
from
the
travel
agency.
HIS
HONOUR:
Have
you
seen
this?
MS.
TREMBLAY:
No.
HIS
HONOUR:
Show
it
to
counsel
first.
MR.
PAPP:
Yes
Your
Honour.
HIS
HONOUR:
Ms.
Tremblay,
where
in
the
reply
to
the
notice
of
appeal
do
you
question
that
the
company
was
a
corporation,
where
is
that
raised?
MS.
TREMBLAY:
Your
Honour,
it
is
not
raised.
Some
problem
has
been
caused
in
the
facts
of
this
case
Your
Honour
because
the
corporation.
.
.
.
HIS
HONOUR:
Where
do
you
raise
that?
MS.
TREMBLAY:
We
raised
that
it
was
an
expense
of
the
business.
The
fact
that
it
was
incorporated
is
not
raised.
HIS
HONOUR:
No
it
is
not
raised.
How
can
you
raise
it
now?
MS.
TREMBLAY:
Yes
Your
Honour.
HIS
HONOUR:
I
beg
your
pardon?
MS.
TREMBLAY:
Yes
Your
Honour.
HIS
HONOUR:
How
can
you
raise
it
now?
MS.
TREMBLAY:
Your
Honour,
the
reply
has
been
made
on
the
assumption
made
by
the
Minister
when
the
audit
was.
.
.
.
HIS
HONOUR:
What
the
Minister
is
asserting
is
the
expenses
were
not
incurred
for
the
purpose
of
gaining
and
producing
income
from
the
business.
MS.
TREMBLAY:
Well
Your
Honour,
the
business
we
are
talking
about
Papp
T.V.
stated
in
paragraph
2:
The
appellant
claims
expenses
arising
from
the
business
operating
as
Art
Papp
T.V.
.
.
.
If
you
look
at
the
tax
returns
for
those
years.
HIS
HONOUR:
The
tax
return
for
who?
MS.
TREMBLAY:
For
Mr.
Papp.
HIS
HONOUR:
Yes.
MS.
TREMBLAY:
We
see
the
financial
statements
are
there
for
Art
Papp
T.V.
HIS
HONOUR:
Yes.
MS.
TREMBLAY:
Our
presumption
is
the
expenses
were
claimed
under
Art
Papp
T.V.
and
those
expenses,
well
we
are
arguing
that
those
expenses
were
not
incurred.
So
now
the
problem
with
Cosmopolitan
is
something
I
realize
may
be
raised
from
the
note
of
the
auditor.
But
the
expenses
claimed
on
that.
.
.
.
We
are
saying
Your
Honour
that
the
expenses
were
claimed
in
relation
to
Art.
HIS
HONOUR:
What
does
that
have
to
do
with
the
incorporation
of
Cosmopolitan
Travel?
MS.
TREMBLAY:
Well
Your
Honour
if
it
is
incorporated.
HIS
HONOUR:
I
don't
know
if
it
is
or
isn’t,
but
you
haven't
raised
it.
You
have
the
onus
of
proving
that.
MS.
TREMBLAY:
That
it
is
incorporated?
I
have
the
certificate
of
Incorporation.
HIS
HONOUR:
As
carrying
on
the
business?
MS.
TREMBLAY:
Yes
sir.
HIS
HONOUR:
Have
you
finished
with
those
documents?
MS.
TREMBLAY:
Your
Honour,
I
just
wanted
to
read.
.
.
.
HIS
HONOUR:
Ms.
Tremblay,
let’s
get
moving.
MS.
TREMBLAY:
I
am
sorry
Your
Honour,
I
haven't
seen
that
letter
before.
HIS
HONOUR:
Go
ahead
Mr.
Papp.
THE
WITNESS:
Yes
Your
Honour.
[EXHIBIT
NO.
A-1:
Letter]
THE
WITNESS:
In
the
fall
of
1982
Your
Honour,
to
give
you
an
explanation
about
the
corporation,
part
of
it.
In
1982
I
had
an
appointment
to
the
Association
and
I
got
erroneous
information.
They
asked
me
if
I
should
incorporate
my
business.
I
contacted
my
lawyer,
he
is
Mr.
H.
Panic
in
Hamilton
and
I
asked
him
if
I
could
possibly
incorporate
the
business
and
Carry
on
as
a
corporation.
He
proceeded
in
1982
to
incorporate
the
business
but
when
I
went
to
Toronto
to
the
Ontario
Government
to
register
it
as
such
I
was
told
I
cannot
operate
as
a
corporation
to
apply
for
another
appointment,
because
if
I
do
I
need
$2,000
fee
for
incorporation.
I
told
the
Registrar
I
don't
have
that
kind
of
money
at
the
time
since
that
was
very
bad
depression
years
and
I
had
to
borrow
and
mortgage
my
house
to
keep
the
businesses
afloat
and
I
was
working.
I
was
told
I
must
register
as
a
sole
proprietorship
and
the
change
cannot
be
allowed.
This
way
I
can
pay
only
$220.
HIS
HONOUR:
So
you
incorporated
but
you
didn't
use
the
incorporation.
THE
WITNESS:
Yes.
HIS
HONOUR:
That
is
all
you
have
to
say.
THE
WITNESS:
To
prove,
Your
Honour,
I
notified
my
accountant
and
also
in
1983,
in
May,
I
notified
the
Department
of
Revenue
and
they
sent
me
a
form
to
fill
out,
to
list
that
should
be
an
inactive
company.
HIS
HONOUR:
You
have
just
told
me
that.
THE
WITNESS:
I
notified
the
Tax
Department.
HIS
HONOUR:
Yes,
go
on.
THE
WITNESS:
I
operated
as
a
sole
proprietorship
continuously
until
1985
Your
Honour
and
at
that
time
I
got
a
partner
for
two
or
three
years,
we
were
in
partnership
but
he
decided
to
get
out
from
the
business
and
I
bought
him
out
and
presently
I
still
operate
as
a
sole
proprietorship.
Basically
these
are
the
histories
of
the
two
businesses
that
I
would
like
to
give
the
court
the
information.
Now
I
would
like
to
substantiate
1983,
1984,
1985
that
my
business
as
Cosmopolitan
Travel,
which
is
part
of
the
tax
return.
.
.
.
HIS
HONOUR:
Expenses
with
each
company?
THE
WITNESS:
Yes.
HIS
HONOUR:
In
other
words
they
disallowed
you
expenses
for
Art.
THE
WITNESS:
Yes
Your
Honour.
HIS
HONOUR:
Let
me
finish.
THE
WITNESS:
I
am
sorry.
HIS
HONOUR:
I
just
want
to
tell
you
what
you
have
to
do
now.
Go
to
page
3
of
the
reply
to
the
notice
of
the
appeal.
THE
WITNESS:
Your
Honour
I
don't
have
that
with
me
unfortunately.
HIS
HONOUR:
Those
are
the
amounts
that
are
in
issue.
THE
WITNESS:
I
do
have
that
figure
but
I
do
not
have
the
years
in
question,
the
amounts.
HIS
HONOUR:
The
amounts?
THE
WITNESS:
1983,
1984
and
1985.
HIS
HONOUR:
Promotion,
travel
promotion,
miscellaneous
expense.
THE
WITNESS:
Yes
Your
Honour.
HIS
HONOUR:
The
total
disallowed
$7,994,
1983
$1,375.35.
Do
you
have
the
figures?
THE
WITNESS:
Yes.
HIS
HONOUR:
Let
us
go
on
to
each
one.
Let
us
do
1983
first,
okay.
What
do
you
want
to
do
first,
do
you
want
to
do
it
by
year
or
do
you
want
to
do
it
by
subject
matter?
THE
WITNESS:
Your
Honour
I
would
like
to
do
it
by
year
so
it
will
be
easier,
that
is
the
way
I
prepared
it.
HIS
HONOUR:
1983
first.
THE
WITNESS:
Yes
Your
Honour.
Advertising
and
promotion.
Your
Honour,
in
the
last
Court
case
what
I
tried
to
explain.
.
.
.
HIS
HONOUR:
This
is
the
same
Court
case.
THE
WITNESS:
In
1982
I
became
President
of
the
Hungarian
Community
Centre
in
Hamilton.
The
community
centre
was
not
existing
at
the
time.
I
went
out
with
the
committee
to
find
a
home
for
the
Hungarian
community
and
purchased
one.
For
this
it
was
necessary
to
collect
some
money
from
the
community.
Being
the
president
and
owner
of
two
business
I
thought
it
would
be
a
good
time
for
me
to
get
involved
with
the
Hungarian
community
and
help
them
to
find
a
home.
Also
at
the
same
time
to
get
the
name
of
my
business
Papp
T.V.
&
Appliances
and
Cosmopolitan
Travel
better
known
in
the
community.
Since
they
needed
money
I
decided
that
my
business,
I
should
take
leadership
in
the
community,
especially
with
the
Hungarian
businesses,
to
give
some
money
from
the
business
for
this
purpose.
At
this
time
they
told
me
that
if
I
donated
or
gave
that
kind
of
money
to
the
fund
I
would
get
three
years
of
advertisement
for
my
business
in
the
Hungarian
language,
which
I
also
have
to
establish
at
the
same
time.
I
gave
from
Papp
T.V.
&
Appliances.
.
.
.
HIS
HONOUR:
They
told
you
if
you
gave
money
you
would
get
free
advertising?
THE
WITNESS:
Yes,
for
three
years
Your
Honour.
For
Papp
T.V.
&
Appliances
and
Cosmopolitan
Travel.
The
advertisements
would
have
been
$50
a
month
for
each
business
Your
Honour.
I
gave
them
$5,000
hoping
that
the
other
businesses
will
chip
in
if
I
took
the
leadership.
I
made
the
claim
which
eventually
the
Tax
Department
denied
as
far
as
advertising
and
promotion.
HIS
HONOUR:
What
kind
of
magazine
was
this?
THE
WITNESS:
Your
Honour,
I
have
a
copy
of
it.
HIS
HONOUR:
What
page
is
the
advertising
on?
May
I
see
the
advertisement?
What
page
is
the
advertisement
on?
I
see
Cosmopolitan,
where
is
the
Papp
one?
THE
WITNESS:
Your
Honour,
on
that
particular
book
the
page
is
missing,
it
is
not
in
there.
HIS
HONOUR:
So
give
me
one
with
Papp.
THE
WITNESS:
That
is
missing,
I
left
it
home.
It
is
something
like
this
also
Your
Honour,
two
different
things,
they
left
it
out,
Papp
is
not
there
Your
Honour,
it
is
just
a
smaller
version,
there
are
two
versions
that
came
out.
HIS
HONOUR:
So
no
Papp?
THE
WITNESS:
I
forgot
the
other
pages,
there
are
four
pages,
I
don't
know
why.
HIS
HONOUR:
Let
me
see
Papp
Television.
THE
WITNESS:
Not
there
Your
Honour
because
I
left
the
wrong
page
at
home.
HIS
HONOUR:
So
there
is
no
Papp
here
at
all.
[EXHIBIT
NO.
A-2:
Hellenic
Community
Magazine]
THE
WITNESS:
That
was
the
very
first
issue,
that
was
for
three
years
Your
Honour.
As
far
as
the
promotion
I
also.
.
.
.
HIS
HONOUR:
Just
a
moment,
we
are
going
on
now
to
promotion.
THE
WITNESS:
This
is
the
promotion.
I
also
have
receipts
from
the
community
centre
that
my
business
Papp
T.V.
donated
20
am/fm
transistor
radios
for
door
prizes
to
the
value
of
$500
and
I
have
a
receipt
for
that
from
the
community
centre.
HIS
HONOUR:
Who
determined
the
value?
THE
WITNESS:
Your
Honour,
I
did
because
they
cost
me
so
much
and
they
know
how
much
it
cost
the
am/fm
radios.
HIS
HONOUR:
You
donated
am/fm
radios
for
what?
THE
WITNESS:
For
door
prizes
at
the
Hungarian
Community
centre.
I
have
receipt
from
the
community
centre.
HIS
HONOUR:
How
many
radios
did
you
donate?
THE
WITNESS:
20
Your
Honour.
HIS
HONOUR:
How
much
did
radio
cost
you?
THE
WITNESS:
$500
for
a
package
for
20.
HIS
HONOUR:
How
much
did
it
cost
you
from
the
wholesaler?
THE
WITNESS:
That
is
my
cost
price
Your
Honour,
that
was
my
cost
price.
HIS
HONOUR:
How
much
did
it
cost
you?
THE
WITNESS:
Around
24
to
$25,
something
like
that
at
the
time.
HIS
HONOUR:
Let
me
see
that
receipt
please.
THE
WITNESS:
Yes
Your
Honour.
[EXHIBIT
NO.
A-3:
Receipt
for
radios]
HIS
HONOUR:
What
is
this
cheque
you
are
showing
me?
THE
WITNESS:
This
is
the
amount
in
question
originally
I
gave
to
the
community
centre.
HIS
HONOUR:
This
is
for
the
advertising?
THE
WITNESS:
Yes
Your
Honour.
HIS
HONOUR:
Travel
promotion
$500,
what
is
the
other
$2,200?
THE
WITNESS:
Your
Honour,
I
thought
this
would
cover
both
businesses.
[EXHIBIT
NO.
A-4:
Cheque]
HIS
HONOUR:
Advertising
promotion
you
have
a
total
of
for
1983
$4,245;
1984
$1,650.
Let
us
just
do
1983,
in
1983
you
claimed
$4,245
as
shown
on
the
cheque
for
$5,000.
THE
WITNESS:
Yes.
HIS
HONOUR:
You
have
travel
and
promotion
$2,748
and
promotion
was
$500.
THE
WITNESS:
That
is
for
the
travel
promotion,
that
is
not
in
question
Your
Honour
because
there
is
another
point
that
comes
before
that
for
$1,001.50,
I
am
still
with
the
one
item,
the
first
item.
HIS
HONOUR:
Go
ahead.
THE
WITNESS:
That
is
all
the
evidence
I
have
for
the
Item
1
Your
Honour.
HIS
HONOUR:
That
is
for
travel
and
promotion.
Ms.
Tremblay,
has
your
client
seen
these
cheques?
MS.
TREMBLAY:
These
cheques,
yes
Your
Honour,
for
$5,000.
HIS
HONOUR:
I
beg
your
pardon?
MS.
TREMBLAY:
$5,000,
yes
Your
Honour.
HIS
HONOUR:
Go
ahead
Mr.
Papp.
MS.
TREMBLAY:
Your
Honour,
may
I
see
it
again
just
for
the
back?
HIS
HONOUR:
If
you've
seen
it
already
I
am
sure
the
auditor
has
taken
note
of
this
Ms.
Tremblay.
MS.
TREMBLAY:
Yes
it
has
Your
Honour.
HIS
HONOUR:
Go
ahead
Mr.
Papp.
MS.
TREMBLAY:
I
am
sorry
Your
Honour.
THE
WITNESS:
Your
Honour,
the
1983
taxation
year
I
travelled
short
or
long
distances
many
times
because
I
am
the
only,
the
first
agency
in
Ontario
as
far
as
I
knew
at
that
time
who
developed
video
travel.
I
was
the
person
who
thought
of
that.
HIS
HONOUR:
What
kind
of
travel?
THE
WITNESS:
Video
travel.
I
made
my
own
videos,
I
went
many
destinations
and
properties
so
I
could
show
it
to
my
clients
when
they
come
in
about
the
place
instead
of
just
reading
it
from
the
brochure.
I
developed
a
video
library
with
many
thousands
of
destinations
and
the
auditor.
.
.
.
HIS
HONOUR:
How
many
thousands?
THE
WITNESS:
At
the
moment
I
have
over
70,000
different
properties
on
video
and
this
video
library
was
shown
to
the
auditor
at
the
time,
I
showed
the
library
to
him
at
the
time.
HIS
HONOUR:
Of
videos?
THE
WITNESS:
Yes,
I
still
have
the
videos
Your
Honour,
in
my
office,
and
I
still
show
it
to
my
clients.
To
show
you
I
just
happen
to
have
a
photograph
of
one
of
my
travels
in
Greece
where
I
was
carrying
a
camera,
a
video
camera,
I
was
doing
videos
as
part
of
it
just
to
prove
a
point
Your
Honour.
HIS
HONOUR:
Where
is
that
picture?
THE
WITNESS:
Over
there
Your
Honour.
HIS
HONOUR:
Do
you
go
by
yourself
on
these
trips?
THE
WITNESS:
Your
Honour,
no.
I
went
with
a
bunch
of
travel
agents
usually
from
tour
operators
of
the
airline
sponsoring
Fam.
trips,
familiarization
trips
with
destinations.
At
only
one
time
I
took
my
wife
one
trip,
usually
I
went
alone.
HIS
HONOUR:
If
the
airline
sponsors
the
trip
how
do
you
incur
expenses?
THE
WITNESS:
Pardon?
The
airline?
HIS
HONOUR:
Yes.
THE
WITNESS:
We
have
to
pay
at
the
reduced
rate
Your
Honour.
HIS
HONOUR:
Go
ahead.
THE
WITNESS:
Just
to
show
you
my
travel
I
have
most
of
my
travel
tickets
paid
with
American
Express
cards
and
I
have
statements
from
American
Express
Company
to
show
you.
I
would
like
to
show
it
to
counsel
for
the
other
side
here
for
1983.
HIS
HONOUR:
Has
your
client
seen
these
already?
MS.
TREMBLAY:
Well
Your
Honour
if
American
Express
are
with
the
plane
tickets.
.
.
.
Maybe
Your
Honour
that
would
simplify
it
seems
that.
.
.
.
HIS
HONOUR:
I
am
going
to
adjourn
for
15
minutes
and
perhaps
have
your
client
go
through
this.
Because
I
don't
know
the
reason,
the
reason
you
are
saying
expenses
were
not
incurred
has
been
your
assumptions
here
we
have
the
receipts.
Your
assumption
is
expenses
were
not
incurred,
they
were
not
incurred
for
producing
income,
they
were
personal
and
living
expenses.
Obviously
these
are
expenses
and
he
has
given
an
explanation
of
these
expenses.
Show
everything
Mr.
Papp.
THE
WITNESS:
Yes
Your
Honour.
HIS
HONOUR:
For
all
three
years
and
maybe
we
can
get
this
thing
settled.
MS
TREMBLAY:
Thank
you
Your
Honour.
[EXHIBIT
NO.
A-5:
Video]
[Court
adjourned]
[Upon
resuming]
HIS
HONOUR:
Okay
Mr.
Papp
and
Ms.
Tremblay,
I
understand
you
have
come
to
some
sort
of
an
agreement.
MS
TREMBLAY:
Yes
Your
Honour.
We
discussed
the
whole
matter
and
looked
at
the
evidence
and
we
discussed
the
whole
issue
and
we
finally
agreed.
HIS
HONOUR:
Yes,
go
ahead
please.
MS.
TREMBLAY:
For
the
1983
taxation
year
the
parties
agree
that
advertising
and
promotion
expenses
in
the
amount
of
$3,000
should
be
allowed,
and
that
the
travel
and
promotion
expense
in
the
amount
of
$2,000
should
be
allowed.
So
that
is
for
1983
Your
Honour.
For
1984
advertising
and
promotion
expenses
of
$1,650
should
be
allowed
and
miscellaneous
expenses
of
$3,000
should
be
allowed.
HIS
HONOUR:
For
1985?
MS.
TREMBLAY:
For
1985
advertising
and
promotion
expense
of
$2,630
should
be
allowed
and
for
the
insurance
of
$100
should
be
allowed.
HIS
HONOUR:
There
are
no
costs
I
assume?
MS.
TREMBLAY:
We
forgot
to
discuss
the
costs.
HIS
HONOUR:
How
much
were
your
costs
to
come
here
from
Hamilton?
THE
WITNESS:
Your
Honour,
I
lost
almost
a
whole
day's
work.
HIS
HONOUR:
Your
expenses?
THE
WITNESS:
My
expenses
were
car
expenses.
I
don't
know,
maybe
$20
to
$25
of
gas
expenses
and
my
time
and
that's
about
it.
HIS
HONOUR:
I
can't
do
anything
about
your
time,
that
is
not
an
incurred
expense.
THE
WITNESS:
And
lunch,
that's
about
it.
HIS
HONOUR:
About
$100
in
costs
to
cover
disbursements.
MS.
TREMBLAY:
Your
Honour,
yes.
HIS
HONOUR:
Okay,
$100.
MR.
PAPP:
Thank
you
Your
Honour.
HIS
HONOUR:
Judgment
will
be
as
follows.
The
appeals
for
1983,
1984
and
1985
will
be
allowed
and
referred
back
to
the
Minister
of
National
Revenue
for
reconsideration
and
reassessment
on
the
following
basis:
1983
taxation
year
will
be
reassessed
permitting
the
appellant’s
advertising
and
promotional
expenses
an
additional
$3,000;
travel
and
promotion
of
$2,000.
1984
will
be
reassessed
to
allow
advertising
promotion
of
$1,650
and
miscellaneous
of
$3,000.
1985
advertising
and
promotion
expenses
will
be
allowed
to
the
extent
of
$2,630
and
insurance
$100.
The
appellant’s
cost,
you
will
be
entitled
to
$100
costs.
Is
that
agreeable?
THE
WITNESS:
Your
Honour
yes
it
is.
HIS
HONOUR:
l
was
going
to
ask
you
one
question.
Were
you
allowed
any
amounts
for
advertising
and
promotion?
THE
WITNESS:
I
am
sorry?
HIS
HONOUR:
Were
you
allowed
previously
any
amounts,
are
these
amounts
in
addition
to
what
you
were
previously
allowed?
THE
WITNESS:
They
allowed,
I
had
proof
for
that
at
the
time.
HIS
HONOUR:
So
these
are
additional
amounts?
THE
WITNESS:
Additional
amounts
that
I
could
not
prove
at
the
time.
HIS
HONOUR:
This
is
in
addition
to
what
was
allowed
to
you?
THE
WITNESS:
Yes
Your
Honour.
HIS
HONOUR:
!
will
put
it
these
are
additional
expenses.
MS.
TREMBLAY:
Yes
Your
Honour.
HIS
HONOUR:
Thank
you
very
much
Mr.
Papp.
THE
WITNESS:
Thank
you
Your
Honour.
HIS
HONOUR:
I
am
glad
we
were
able
to
resolve
this
here.
I
think
you
were
better
prepared
here
than
you
were
in
Toronto.
THE
WITNESS:
Yes.
Thank
you
Your
Honour.
Appeal
allowed.
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