St-Onge,
TCJ
[ORALLY]:—The
appeal
of
Mr
William
Frederick
Johnson
was
heard
on
January
12,
1984,
at
the
City
of
Toronto,
Ontario,
and
the
issue
is
whether
the
appellant
failed
to
report
income
in
the
amount
of
$41,944.09
in
his
1978
taxation
year.
The
facts
of
this
appeal
are
set
forth
at
paragraph
6
of
the
reply
to
the
notice
of
appeal
which
reads
as
follows:
Reply
to
Notice
of
Appeal
6.
In
assessing
tax
as
aforesaid,
he
relied,
inter
alia,
upon
the
following
findings
or
assumptions
of
fact:
(a)
the
Appellant
was
at
all
material
times
an
employee
of
Bee
Line
Carriers
Ltd;
(b)
until
the
sale
of
his
farm
in
November,
1977,
the
Appellant
was
also
engaged
in
the
business
of
farming;
(c)
the
fiscal
year
end
of
the
farm
was
March
31;
(d)
in
the
1978
taxation
year
the
Appellant
earned
$98,225.00
from
the
sale
of
crops
and
$46,750.15
from
the
sale
of
cattle
for
gross
farm
income
of
$144,975.15;
(e)
in
the
1978
taxation
year
the
Appellant
failed
to
report
income
in
the
amount
of
$41,944.09;
(f)
the
Appellant
knowingly
or
under
circumstances
amounting
to
gross
negligence
in
the
carrying
out
of
a
duty
or
obligation
imposed
by
the
Income
Tax
Act
has
made
false
statements
or
omissions
in
his
1978
tax
return
with
the
result
that
less
tax
appeared
payable
by
him
for
the
said
taxation
year
than
was
in
fact
payable
for
the
said
taxation
year;
(g)
the
amount
of
tax
that
the
Appellant
failed
to
report
as
a
consequence
of
his
false
statements
or
omissions
in
his
1978
income
tax
return
was
$13,156.08;
(h)
in
the
1979
taxation
year
the
Appellant
failed
to
report
interest
income
in
the
amount
of
$3,925.36;
(i)
the
Appellant
knowingly
or
under
circumstances
amounting
to
gross
negligence
in
the
carrying
out
of
a
duty
or
obligation
imposed
by
the
Income
Tax
Act
has
made
false
statements
or
omissions
in
his
1979
tax
return
with
the
result
that
less
tax
appeared
payable
by
him
for
the
said
taxation
year
than
was
in
fact
payable
for
the
said
taxation
year;
(j)
the
amount
of
tax
that
the
Appellant
failed
to
report
as
a
consequence
of
his
false
statements
or
omissions
in
his
1979
income
tax
return
was
$639.20;
At
the
hearing,
the
appellant
admitted
that
he
had
failed
to
report
$41,944.09.
The
evidence
has
also
revealed
that
he
has
been
grossly
negligent
in
the
carrying
out
of
his
duty
or
obligations
imposed
by
the
Act
for
the
following
reasons:
(1)
The
lack
of
books
and
accounting
system;
(2)
At
the
hearing
he
has
recognized
that
it
was
dangerous
to
record
his
income
and
expense
as
he
did;
(3)
The
appellant
signed
his
return
without
controlling
the
correctness
of
his
income;
(4)
the
auditor
for
Revenue
Canada
took
only
two
hours
to
discover
that
$41,944.09
was
not
reported
as
income.
The
appellant
had
the
responsibility
to
gather
all
his
material
in
order
to
inform
his
accountant.
He
had
a
lot
of
time
to
do
so
to
prepare
his
return.
In
the
present
appeal
the
fact
that
the
appellant,
a
businessman,
has
failed
to
report
one-third
of
his
farming
income
is
sufficient
to
decide
that
he
has
been
grossly
negligent
in
filing
his
1978
taxation
return.
For
these
reasons,
the
appeal
is
dismissed.
Appeal
dismissed.
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