98-43(IT)I
BETWEEN:
GARY MOUGHTIN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Appeals heard on June 3, 1998 at Victoria,
British Columbia, by
the Honourable Judge D.W. Beaubier
Appearances
For the
Appellant:
The Appellant himself
Counsel for the
Respondent:
David R. Poore
JUDGMENT
The
appeals from the reassessments made under the Income Tax
Act for the 1995 and 1996 taxation years are dismissed.
Signed at Ottawa, Canada this 16th day of
June 1998.
J.T.C.C.
Date: 19980616
Docket: 98-43(IT)I
BETWEEN:
GARY MOUGHTIN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
(Delivered orally from the bench
at Victoria, British Columbia, on
June 4, 1998)
Beaubier, J.T.C.C.
[1] This appeal
pursuant to the Informal Procedure was heard at Victoria, British
Columbia, on June 3, 1998. The Appellant was the only
witness.
[2] Paragraphs 12 and
13 of the Reply to the Notice of Appeal read:
12. By
Notices dated February 27, 1997, the Minister of National Revenue
(the "Minister") reassessed the Appellant for the 1995
taxation year to include in employment income the amount of
$12,250.00 referred to herein and to levy the penalties in the
amount of $1,640.46 pursuant to subsection 163(2) of the
Income Tax Act (the "Act"). The return
for the 1996 taxation year was assessed as filed.
13. In so
reassessing the Appellant, the Minister made the following
assumptions of fact:
(a)
the Appellant was employed by the Employer in the 1995 and 1996
taxation years;
(b)
the Appellant received employment income from the Employer in the
amounts of $12,250.00 and $12,000.00 in the 1995 and 1996
taxation years respectively;
(c)
the Appellant did not include in employment income in the amount
of $12,250.00 when computing his income for the 1995 taxation
year;
(d)
the Appellant included employment income in the amount of
$12,000.00 without a T4 slip when computing his income for the
1996 taxation year; and
(e)
the Appellant knowingly or under circumstances amounting to gross
negligence made an omission in his return of income by not
reporting the employment income in the amount of $12,250.00 in
respect of the 1995 taxation year within the meaning of
subsection 163(2) of the Act and penalties were properly
calculated and levied.
[3] The assumptions
in paragraph 13 are correct. In about March, 1996 the Appellant
spoke to his employer's accountant, who asked him to sign
loan papers respecting the $12,250.00 he had received from his
employer in 1995. The Appellant refused.
[4] The Appellant was
of the view that he had received wages in 1995. In his opinion it
should have been $4,000.00 per month including withholdings. He
was paid the $12,250.00 in 1995, but there were no withholdings.
Nonetheless, the Appellant did not report either sum in his 1995
income tax return, nor did he file an amended 1995 return,
although at all times he considered them wages and actively
continued to take that position throughout 1996.
[5] It remains his
position but he believes that his employer should have paid the
withholdings that represent the difference between $4,000.00 per
month and approximately $3,000.00 per month.
[6] Thus, on the
evidence, the Appellant deliberately and knowingly failed to
report the income in question contrary to section 150 of the
Income Tax Act.
[7] Therefore he is
liable for the penalties assessed under section 163(2) of the
Income Tax Act.
[8] The appeal is
dismissed.
Signed at Ottawa, Canada this 10th
day of November 1998.
J.T.C.C.
COURT FILE
NO.:
98-43(IT)I
STYLE OF
CAUSE:
Gary Moughtin and The Queen
PLACE OF
HEARING:
Victoria, British Columbia
DATE OF
HEARING:
June 3, 1998
REASONS FOR JUDGMENT BY:
The Honourable Judge D.W. Beaubier
DATE OF
JUDGMENT:
June 16, 1998
APPEARANCES:
For the
Appellant:
The Appellant himself
Counsel for the
Respondent: David R. Poore
COUNSEL OF RECORD:
For the Appellant:
Name:
Firm:
For the
Respondent:
Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada
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