D
E
Taylor
[Translation]:—The
above
appeals
were
heard
on
common
evidence
at
Montreal,
Quebec
on
February
2,
1981.
The
said
appeals
were
brought
against
all
the
penalties
imposed
in
income
tax
assessments
for
the
years
1971
to
1976.
At
the
request
of
counsel
for
the
Minister,
the
appeals
of
Les
Entreprises
Fibro
Inc
(Fibro)
for
1973,
1974,
1975
and
1976
and
the
appeal
of
Gilberte
Viau
for
1976
were
quashed,
as
no
penalties
were
imposed
for
the
said
years.
Income
tax
returns
were
filed
by
the
appellants
only
after
receiving
notices
sent
by
the
Minister.
The
Department
of
National
Revenue
undertook
certain
inquiries
into
the
appellants’
affairs,
and
these
resulted
in
the
assessments
on
appeal,
based
on
the
capital
reconciliation
method.
In
the
case
of
Fibro,
it
transpired
that
a
separate
bank
account
in
which
income
had
been
deposited
had
not
been
disclosed;
as
to
the
appellant
Gilberte
Viau,
it
appeared
that
a
sizable
sum
from
interest
was
not
mentioned;
and
as
regards
Louis
Viau,
no
account
was
kept
of
income
from
the
construction
of
private
swimming
pools.
The
penalties
imposed
on
Fibro
and
Gilberte
Viau
were
imposed
pursuant
to
subsection
163(2)
of
the
Income
Tax
Act,
SC
1970-71-72,
c
63,
as
amended,
while
the
penalties
imposed
on
Louis
Viau
fall
under
subsection
163(1)
of
the
Act.
At
the
hearing,
Louis
Viau
testified
on
his
own
behalf
and
for
Gilberte
Viau
and
Fibro,
whose
shares
he
controlled.
He
stated
that
he
held
his
accountant
responsible
for
the
late
filings
and
discrepancies
noted.
At
the
close
of
the
hearing,
the
Board
asked
counsel
for
the
Minister
to
sum
up
the
Minister’s
position
in
a
written
submission,
so
that
the
appellants
could
then
submit
further
relevant
facts
to
the
Board.
Counsel
for
the
Minister
complied
with
the
Board’s
request,
but
nothing
has
been
submitted
by
the
appellants.
The
Board
accordingly
concludes
that
the
Minister
has
fulfilled
his
responsibility
under
subsection
163(3)
of
the
Act,
and
refers
to
the
decisions
in
the
following
cases:
John
Howell
v
MNR,
[1981]
CTC
2241;
81
DTC
230;
Gary
P
Sorenson
v
MNR,
(unreported),
and
William
Fulcher
v
MNR,
[1982]
CTC
2198;
For
these
reasons,
the
appeals
are
dismissed.
Appeals
dismissed.
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