97-3575(IT)I
BETWEEN:
DALE G. STEPHENS,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Appeals heard on November 26, 1998 at Saskatoon,
Saskatchewan, by
the Honourable Judge D.W. Beaubier
Appearances
For the
Appellant:
The Appellant himself
Counsel for the
Respondent:
Gordon Berscheid
JUDGMENT
The
appeals from the reassessments made under the Income Tax
Act for the 1993 and 1994 taxation years are allowed and the
matter is referred back to the Minister of National Revenue for
reconsideration and reassessment in accordance with the attached
Reasons for Judgment.
Signed at Ottawa, Canada this 16th day of December
1998.
J.T.C.C.
Date: 19981216
Docket: 97-3575(IT)I
BETWEEN:
DALE G. STEPHENS,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
(Delivered orally from the Bench
at Saskatoon, Saskatchewan
on November 27, 1998)
Beaubier, J.T.C.C.
[1] This Appeal pursuant to the
Informal Procedure was heard at Saskatoon, Saskatchewan on
November 26, 1998. The Appellant was the only witness. He has
appealed the disallowance of some deductions relating to his
pottery business in Hazlet, Saskatchewan in 1993 and 1994. They
are detailed in Schedules 1 and 2 of the Reply of Notice of
Appeal.
[2] By item the Court finds:
1993
1994
PST
IN
SALES
$16.25
The Appellant testified that he had receipts for these in
Court and that they related to business sales. This claim
is allowed.
[3]
1994
Advertising
$10.00
This item and a second "Donation" of $45.00 raised
at the Appeal were described in receipts filed as
"donations." The $10 to the Saskatchewan Abilities
Council was to a charity. The $45 to the Canadian Taxpayers
Federation was shown as a "contribution" and was not
identified as for business purposes per se. For these
reasons both claims are denied.
[4]
1993
1994
Interest
Bank
$3,487.34 $3,113.42
These claims relate to interest on a loan of $39,000, which
was allocated from a larger loan to the Appellant by his Credit
Union. The allocation occurred when the Credit Union investigated
a loan of $76,000, to divide it between personal and business
purposes. It loaned 75 percent of assets provided as securities,
amounting to $55,000 in gross. The Appellant gave an example of
$100 worth of clay, which has been manufactured into $5,000 of
green pottery moulds as providing $5,000 security.
However, only $4,000 plus $3,572 were identified by him as
constituting original loans obtained for a business purpose. For
this reason, the Appellant is allowed the deduction of interest
on $7,572 principal for each year. There is no clear evidence of
any additional principal in the loan which related to business
expenditures by the Appellant.
[5]
1993
Meals
$29.82
This was described and constituted meals for the Appellant,
his wife and son. It is a personal expense.
[6] A motor vehicle expense claimed
for 1993 was waived by the Appellant.
[7]
1993
1994
Light, Heat and
Water
$962.87 $533.69
The Appellant testified that these related to a house he owned
in Hazlet that was used to store pottery, which had hot and cold
water and was used as a business premises. He testified that it
was not used personally or for any other purpose. This deduction
is allowed for both years.
[8] These Appeals are referred to the
Minister of National Revenue for reconsideration or reassessment
on the foregoing basis.
Signed at Ottawa, Canada this 16th day of December
1998.
J.T.C.C.
COURT FILE
NO.:
97-3575(IT)I
STYLE OF
CAUSE:
Dale G. Stephens and The Queen
PLACE OF
HEARING:
Saskatoon, Saskatchewan
DATE OF
HEARING:
November 26, 1998
REASONS FOR JUDGMENT BY: The Honourable
Judge D.W. Beaubier
DATE OF
JUDGMENT:
December 16, 1998
APPEARANCES:
For the
Appellant:
The Appellant himself
Counsel for the Respondent: Gordon
Berscheid
COUNSEL OF RECORD:
For the Appellant:
Name:
Firm:
For the
Respondent:
Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada
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