Willock v. The Queen, docket 97-3324(IT)I (Informal Procedure)

97-3324(IT)I

BETWEEN:

OLIVER WILLOCK,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

Appeal heard on October 20, 1998, at Toronto, Ontario, by

the Honourable Deputy Judge J.F. Somers

Appearances

For the Appellant:                      The Appellant himself

Counsel for the Respondent:      B. Sood

JUDGMENT

          The appeal from the assessment made under the Income Tax Act for the 1995 taxation year is dismissed in accordance with the attached Reasons for Judgment.

Signed at Ottawa, Canada, this 13th day of November 1998.

"J.F. Somers"

D.J.T.C.C.

Date: 19981113

Docket: 97-3324(IT)I

BETWEEN:

OLIVER WILLOCK,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

REASONS FOR JUDGMENT

Somers, D.J.T.C.C.

[1]      This appeal was heard in Toronto, Ontario, on October 20, 1998.

[2]      This is an appeal from an assessment for the 1995 taxation year since the Appellant failed to include interest income from a foreign source in the amount of $18,079.00.

[3]      In reassessing the Appellant, the Minister of National Revenue (the "Minister") made the following assumptions of fact which were admitted, denied or ignored by the Appellant:

"(a)        at all material times, the Appellant was a full-time employee of Toronto Hydro; (admitted)

(b)         the Board of Inland Revenue for Trinidad and Tobago submitted certain information slips identifying payments made to the Appellant during the 1995 taxation year; (denied)

(c)         during the 1995 taxation year, the Appellant received interest income from foreign source in the amount of $18,079.00; (ignored)

(d)         the Appellant failed to report interest income received from foreign source in his income tax return for the 1995 taxation year." (denied)

[4]      The Appellant, an assistant comptroller at Toronto Hydro Electric System, testified that his father died leaving an estate in Trinidad; the will appointed the Appellant and the Republic Bank Limited as executors. In fact, the Bank attended to the execution of the will and the distribution of the assets. The Appellant was the residual beneficiary of the will with the final distribution made on April 11, 1995.

[5]      The Appellant had a bank account in the Republic Bank Limited in which payments were made. The Appellant admits that he had accumulated interest of $5,322.00 for the taxation year 1995, which amount was not declared. The Republic Bank Limited, in a letter dated June 6, 1997 addressed to the Appellant, stated that the figures indicated represented the interest, rent and dividends earned on the assets after the date of death. The Appellant maintains that some of the figures represent part of the distribution of the assets of the estate.

[6]      The Minister relied on a form obtained from the Government of the Republic of Trinidad and Tobago, copy of which was produced as exhibit R-3, indicating the interest paid to the Appellant in the 1995 taxation year.

[7]      There is contradictory evidence as to the amount of interest earned in the 1995 taxation year. The Appellant states the interest earned amounted to $5,322.00 while the Minister assessed the amount of $18,548.00 based on documents received from the Government of the Republic of Trinidad and Tobago.

[8]      Furthermore, the Appellant testified that some money was derived by the distribution of the assets of the estate. The documents from the Government of the Republic of Trinidad and Tobago and a letter from the Republic Bank Limited stated otherwise. The Appellant, who had the burden of proof, was unable to refute the Minister's evidence.

[9]      The Minister in reassessing the Appellant for the 1995 taxation year relied on section 3, subsection 248(1) and paragraph 12(1)(c) of the Income Tax Act. By virtue of section 3 of the said Act, the income of the Appellant is determined on income derived from inside or outside of Canada.

[10]     The appeal is dismised.

Signed at Ottawa, Canada, this 13th day of November 1998.

"J.F. Somers"

D.J.T.C.C.

COURT FILE NO.:                             97-3324(IT)I

STYLE OF CAUSE:                           Oliver Willock and Her Majesty the Queen

PLACE OF HEARING:                      Toronto, Ontario

DATE OF HEARING:                        October 20, 1998

REASONS FOR JUDGMENT BY:     the Honourable Deputy Judge J.F. Somers

DATE OF JUDGMENT:                     November 13, 1998

APPEARANCES:

For the Appellant:                      The Appellant himself

Counsel for the Respondent:      B. Sood

COUNSEL OF RECORD:

For the Appellant:

Name:                

Firm:                 

For the Respondent:                  Morris Rosenberg

                                                Deputy Attorney General of Canada

                                                          Ottawa, Canada