97-3424(IT)G
BETWEEN:
MORENO ZEN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Appeal heard on December 9, 1999 at Vancouver,
British Columbia, by
the Honourable Judge D.W. Beaubier
Appearances
Counsel for the
Appellant:
E. Michael McMahon
Counsel for the
Respondent:
Robert Carvalho
JUDGMENT
The
appeal from the reassessment made under the Income Tax Act
for the 1994 taxation year is dismissed.
The
appeal from the reassessment made under the Income Tax Act
for the 1995 taxation year is allowed, and the reassessment is
referred back to the Minister of National Revenue for
reconsideration and reassessment in accordance with the attached
Reasons for Judgment.
The
Respondent is awarded party and party costs in the sum of
$3,500.
Signed at Vancouver, Canada this 10th day of
December, 1999.
J.T.C.C.
97-3426(IT)G
BETWEEN:
ROGER ZEN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Appeal heard on December 9, 1999 at Vancouver,
British Columbia, by
the Honourable Judge D.W. Beaubier
Appearances
Counsel for the
Appellant:
E. Michael McMahon
Counsel for the
Respondent:
Robert Carvalho
JUDGMENT
The
appeal from the reassessment made under the Income Tax Act
for the 1994 taxation year is dismissed.
Signed at Vancouver, Canada this 10th day of
December, 1999.
J.T.C.C.
Date: 19991210
Docket: 97-3424(IT)G
BETWEEN:
MORENO ZEN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
AND BETWEEN:
97-3426(IT)G
ROGER ZEN,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
Beaubier, J.T.C.C.
[1] These appeals pursuant to the
General Procedure were heard on December 9, 1999 at
Vancouver, British Columbia.
[2] At the opening of hearing the
Appellants' counsel withdrew the appeal of Roger Zen by
consent without costs. Therefore, it is dismissed. He also
withdrew the appeal of Moreno Zen ("Moreno") for the
1994 year. It is also dismissed.
[3] The appeal for 1995 proceeded.
Moreno Zen and Colin Moran testified on behalf of Moreno. The
Respondent read in portions of the examination for discovery of
Moreno. The Appellant did not file any income tax return for
1995. In 1994 he reported taxable income of $83,747. The Minister
of National Revenue then assessed him as having a taxable income
of $83,747 in 1995. He appealed.
[4] The Appellant reported business
income of $83,747.80 in 1994 as the result of a sale of assets of
the partnership Zen Properties in which he had a 25% interest. On
the evidence presented, his income in the years before and after
1994 was considerably lower than that.
[5] He testified that he had no income
from Zen Properties or anyone else in 1995. His testimony was
corroborated by Colin Moran, the financial consultant of the Zen
Group. The Appellant also filed a statement of his 1995 stock
market trades indicating losses.
[6] The Appellant and Mr. Moran
testified that although Moreno Zen was born in 1960, he lived in
his parents' home in 1995 through to the date of trial.
During 1995 his spending money came from over $30,000 loaned to
him by his father Giovanni. They are believed.
[7] A short summary of their testimony
and Moreno Zen's appearance in Court is that he is a slothful
person who lived off of his parents in 1995. As a result, he
earned no income, he needed no income and he doesn't have to
pay any income tax.
[8] The appeal is allowed.
[9] In respect to the appeal itself,
the Appellant did not file any 1995 income tax return until
December, 1999. No 1995 full financial statement of Zen
Properties was tendered until trial. This despite an adjournment
of trial in September and an admonition in the Order of
adjournment dated September 20, 1999, that exhibits be
tabled and indexed for the hearing. The Court does not consider
this to be the fault of the Appellant's Counsel. Rather, it
demonstrates the Appellant's attitude toward the entire
process. For this reason, the Respondent is awarded party and
party costs which the Court fixes in the amount of $3,500.
Signed at Vancouver, Canada this 10th day of
December, 1999.
J.T.C.C.
COURT FILE
NO.:
97-3424(IT)G and 97-3426(IT)G
STYLE OF
CAUSE:
Moreno Zen v. The Queen
Roger Zen v. The Queen
PLACE OF
HEARING:
Vancouver, British Columbia
DATE OF
HEARING:
December 9, 1999
REASONS FOR JUDGMENT BY: The Honourable
Judge D.W. Beaubier
DATE OF
JUDGMENT:
December 10, 1999
APPEARANCES:
Counsel for the
Appellant: E.
Michael McMahon
Counsel for the Respondent: Robert
Carvalho
COUNSEL OF RECORD:
For the Appellant:
Name:
E. Michael McMahon
Firm:
E. Michael McMahon
Vancouver, British Columbia
For the
Respondent:
Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada
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