Hanko v. R., [1999] 4 CTC 2189 (Informal Procedure)

Beaubier T.C.J. (orally):

This appeal pursuant to the Informal Procedure was heard at Vancouver, B.C. on May 17, 1999. The Appellant was the only witness.

The Appellant has appealed a reassessment for his 1995 taxation year. Paragraphs 5 to 8 inclusive of the Reply read:

5. In filing his income tax return for the 1995 taxation year, the Appellant did not report employment income in the amount of $8,654 from Clemco Industries Inc. (the “Employer”).

6. By Notice dated January 31, 1997, the Minister of National Revenue (the “Minister”) reassessed the appellant for the 1995 taxation year to include in employment income the amount of $8,654.

7. In so reassessing the Appellant, the Minister made the following assumptions of fact:

(a) the Appellant was employed by the Employer in the 1995 taxation year;

(b) the Appellant received employment income from the Employer in the amount of $19,654 in the 1995 taxation year; and

(c) the Appellant did not include in employment income the amount of $8,654 when computing his income for the 1995 taxation year.

8. The issue is whether the Minister has correctly included in the Appellant’s employment income the amount of $8,654 for the 1995 taxation year.

The Appellant disputes the question of whether the income was from employment. However he admitted that he did not report $8,654 of income received from Clemco Industries Inc. in 1995. He said that he had incurred expenses in that amount which offset the income. But he did not prove any expenses incurred by him for the purpose of gaining income in 1995. The onus was on him to disprove the assumptions and to prove the alleged expenses. He has failed to do so.

Therefore the appeal is dismissed.

Appeal dismissed.