Roland
St-Onge
[TRANSLATION]:—The
appeals
of
Mr
François
Durocher
and
of
Indépendant
Gaz
Service
Inc
came
before
me
on
February
14,1980
in
Montreal,
Quebec.
The
points
at
issue
in
the
case
of
Mr
François
Durocher
are
as
follows:
(1)
it
is
alleged
that
during
the
years
1967,
1968,
1969,
1970,
1971
and
1972,
the
appellant
appropriated
$16,619.91,
representing
unreported
sales
made
by
the
company;
(2)
it
is
alleged
that
during
the
same
period
he
failed
to
report
(a)
interest
income
totalling
$840.86;
(b)
collected
rents
totalling
$4,110;
and
(3)
it
is
alleged
that
he
appropriated
$38,835.44
in
personal
expenses
paid
by
the
company
to
acquire
a
trailer
and
for
repairs
to
his
residence.
After
a
hearing
lasting
one
day,
the
Board
decided
that
there
were
sufficient
misrepresentations
by
the
appellant
to
authorized
the
Minister
to
apply
subsection
46(4)
of
the
Income
Tax
Act
and
assess
the
appellant
beyond
the
four
year
period.
Following
this
decision,
the
parties
reached
an
agreement
concerning
the
following
amounts:
(1)
the
expenses
of
$2,079.45
allowed
by
the
Department
of
National
Revenue
and
appearing
under
the
heading
“Other
Expenses
Allowed”
are
increased
by
$1,829.79
to
$3,909.24;
(2)
the
following
amounts,
which
were
taxed
as
benefits
in
relation
to
telephone,
electricity,
heating
and
residence
charges,
will
be
deducted
from
the
appellant’s
income:
1970
taxation
year—$360
1971
taxation
year—$360
1972
taxation
year—$150
(3)
the
amount
of
$2,200
which
was
taxed
as
an
appropriation
in
1967
(trailer),
will
be
deducted
from
the
appellant’s
income
for
the
1967
taxation
year;
(4)
an
additional
amount
of
$1,125
is
allowed
in
respect
of
automobile
expenses,
allocated
in
proportion
to
the
expenses
disallowed
in
each
of
the
taxation
years
in
dispute.
The
appellant’s
appeal
in
respect
of
the
1967,
1968,
1969,
1970,
1971
and
1972
taxation
years
is
therefore
allowed
in
part
and
the
matter
is
referred
back
to
the
respondent
for
reassessment.
Appeal
allowed
in
part.
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