M
J
Bonner:—The
appellant
is
the
controlling
shareholder
of
at
least
two
corporations,
International
Audio
Visual
Ltd.
(hereinafter
“International”)
and
Wildwood
Mobilehome
Park
Ltd.
(hereinafter
“Wildwood”).
The
respondent
assessed
tax
for
the
appellant’s
1973
taxation
year
on
the
basis
that
the
appellant’s
income
for
the
year
included
the
sum
of
$17,350,
received
by
the
appellant
from
Wildwood.
That
sum
represented
commission
income
earned
by
the
appellant
in
1970
from
employment
with
International.
The
appellant’s
accountant
testified
that
the
commissions
were
“expensed”
by
International,
but
were
not
paid
to
the
appellant.
Rather,
he
said,
the
indebtedness
was
“transferred”
to
the
appellant’s
shareholders
account
in
Wildwood
“by
journal
entry”
dated
August
31,1970.
The
transaction
whereby
the
transfer
was
effected
was
not
further
explained
in
evidence.
I
am
therefore
unable
to
reach
any
conclusion
on
the
question
whether
the
transaction
or
transactions
reflected
by
that
journal
entry
were
such
that
I
could
conclude
that
the
commissions
were
paid
to
and
received
by
the
appellant
on
August
31,
1970.
No
submissions
were
directed
to
this
point.
The
balance
standing
to
the
credit
of
the
appellant
in
the
Wildwood
shareholders
account
immediately
prior
to
the
entry
was
$200,122.37.
That
balance
did
not
drop
below
$212,883.41
until
April
of
1973.
No
evidence
was
introduced
as
to
the
composition
of
the
total
indebtedness
of
Wildwood
to
the
appellant
during
the
period
between
August
of
1970
and
April
of
1973,
although
it
was
common
ground
that
the
$17,350
indebtedness
was,
from
and
after
August
31,
1970,
included
in
the
total.
As
a
result
I
am
unable
to
conclude
that
any
of
the
payments
made
by
Wildwood
to
the
appellant
during
the
period
from
August
31,1970,
to
December
31,1972,
were
on
account
of
the
commission
indebtedness
which
had,
in
some
undisclosed
manner,
been
transferred
to
Wildwood.
The
evidence
established
that
during
April
of
1973
the
appellant
withdrew
all
funds
owing
to
him
by
Wildwood.
The
funds
for
the
withdrawal
became
available
from
the
proceeds
of
a
mortgage
placed
by
Wildwood
on
its
property.
The
appellant
later
“reinvested”
the
monies
withdrawn
in
his
companies.
The
companies
were
not
identified.
The
appellant’s
representative
argued
that,
because
at
the
end
of
1973
the
appellant’s
shareholders
account
for
Wildwood
was
again
in
credit
(by
an
amount
exceeding
$17,350),
the
sum
in
question
was
not
“received”
by
the
appellant
in
1973.
This
argument
lacks
any
merit.
The
transactions
whereby
Wildwood
became
indebted
to
the
appellant
after
April
of
1973
were
not
described
in
evidence,
but
it
is
plain
that
they
cannot
operate
to
eradicate
the
fact
that
in
April
of
1973
all
sums
owing
by
Wildwood
to
the
appellant
were
paid
to
and
received
by
the
appellant.
On
the
facts
before
me
I
can
only
conclude
that
the
assessment
has
not
been
shown
to
be
wrong
and
that
the
appeal
must
therefore
be
dismissed.
Appeal
dismissed.
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