John
B
Goetz:—The
appeal
of
Murray
A
MacKay
was
heard
in
Sydney,
Nova
Scotia,
on
July
23,
1979,
and
relates
to
assessments
by
the
Department
of
National
Revenue
with
respect
to
his
income
tax
liability
for
the
taxation
years
1972,
1973,
1974
and
1975,
by
disallowing,
inter
alia,
certain
expenses
incurred
during
those
years
in
the
amounts
of
$9,113,
$6,085.36,
$3,900
and
$5,036.85
respectively.
The
basis
of
the
Minister’s
disallowance
of
these
expenses
is
based
on
section
4,
subsection
9(1),
paragraphs
18(1)(a),
18(1
)(h),
20(1)(a)
and
section
67
of
the
Income
Tax
Act,
RSC
1952,
c
148
as
amended
by
SC
1970-71-72,
c
63.
In
his
reply
to
notice
of
appeal,
the
Minister
indicated
that
very
large
amounts
of
non-recorded
expenses
were
deducted
in
the
various
taxation
years
and
that
virtually
none
of
the
expenses
claimed
by
the
appellant
were
substantiated
by
receipts.
Further,
it
was
alleged
that
part
of
the
expenses
claimed
by
the
appellant
as
expenses
for
earning
commission
income
were
in
fact
personal
living
expenses
and
that
they
were
not
reasonable
under
the
circumstances.
The
respondent
further
alleged
that
the
appellant
failed
to
keep
accurate
records
and
part
of
the
expenses
claimed
were
not
incurred
for
the
purpose
of
gaining
or
producing
income.
The
appellant
was
sworn
and
gave
evidence
of
a
very
brief
and
non-
effective
nature
none
of
which
was
probative;
and
further
he
did
not
attempt
to
make
answer
in
any
way
to
the
allegations
in
the
reply
to
notice
of
appeal.
Unfortunately
it
is
incumbent
upon
the
appellant
to
disprove
the
allegations
in
the
reply
to
the
notice
of
appeal.
See
R
W
S
Johnston
v
MNR,
[1948]
CTC
195;
3
DTC
1182.
At
the
conclusion
of
the
appellant’s
argument,
counsel
for
the
respondent
moved
for
the
dismissal
and
I
reserve
judgment
at
that
time,
having
concern
for
the
taxpayer.
After
reviewing
the
evidence
and
the
authorities
relating
to
the
appellant’s
problems,
I
accede
to
the
request
of
the
Minister’s
counsel
and
dismiss
this
appeal.
Appeal
dismissed.
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