John
B
Goetz:—This
is
an
appeal
by
the
appellant
with
respect
to
his
1977
taxation
year.
The
appellant
is
retired
and,
as
a
hobby
or
business,
really,
he
sells
Provincial
Lottery
tickets
and
Wintario
Lottery
tickets.
In
1977
the
appellant
purchased
1,764
Wintario
books
which
contained
five
tickets
each.
In
the
same
year
he
purchased
919
Provincial
Lottery
tickets.
On
the
Wintario
books
he
has
a
potential
of
making
money
on
the
sale
of
them,
and
the
same
with
the
Provincial
Lottery.
The
appellant
had
a
route
of
regular
customers
and
he
acquired
new
customers.
One
of
his
techniques
of
pushing
sales
was
opening
sealed
lottery
tickets,
putting
them
on
display
so
that
his
customers,
if
they
felt
lucky
on
seeing
a
certain
number,
I
presume,
could
pick
that
ticket
and
buy
it.
As
a
result
of
this
procedure
the
appellant
was
left
with
a
large
number
of
tickets
that
were
unsealed
and
unsold.
The
appellant
paid
for
all
of
these
tickets,
and
consequently
he
would
be
deemed
to
have
purchased
them
once
he
had
unsealed
them,
if
he
had
not
returned
the
sealed
tickets
to
the
Lottery
people
within
seven
days
of
the
actual
draw.
He
had
until
December
31,
1977
to
sell
lottery
tickets
that
he
had
not
opened,
and
that
were
still
sealed.
Once
the
draw
had
been
made
and
the
tickets
were
unsealed,
they
were
deemed
to
be
his
and
l
so
find.
The
Crown
alleges
that
because
of
all
of
these
tickets
that
appear
in
Exhibit
A-1
plus
other
reasons,
the
taxpayer
had
a
total
income
of
$935.35
of
which
he
declared
$99.60,
leaving
a
balance
of
$835.75
as
being
undeclared
income.
Because
of
the
way
the
appellant
did
his
business,
I
find
that
the
Minister
was
correct
in
assessing
the
appellant
and
that
the
undeclared
balance
of
$835.75
is
deemed
to
be
income
of
the
appellant
pursuant
to
the
provisions
of
section
3,
subsections
9(1)
and
248(1)
of
the
Income
Tax
Act,
SC
1970-71-72,
c
63,
as
amended.
For
the
above
reasons,
I
dismiss
the
appeal.
Appeal
dismissed.
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