A W Prociuk:
1 The appellant corporation, of Whitehorse, Yukon Territory, appeals from the respondent's reassessments of income tax dated February 10, 1971 in respect of the 1967, 1968, 1969 and 1970 taxation years, wherein (1) its payments into an executive pension plan were disallowed as deductions from its income for the taxation years 1967, 1968 and 1969; and (2) the amounts of the expenses of operating two residential buildings owned by the appellant and occupied by its principal shareholders, which were in excess of rentals received for the taxation years 1968, 1969 and 1970 were similarly disallowed.
2 At the hearing no evidence was adduced by either side. Learned counsel for the appellant admitted that the supplementary pension plan, as filed for acceptance and registration, was not a registrable plan. The appeal in respect of this issue must be dismissed, as the respondent quite properly disallowed as deductions any payments that were made to a plan which was not eligible for registration within the meaning of the Income Tax Act.
3 As to the disallowance of the expenses claimed in respect of maintenance of the two residences to the extent that they were in excess of rentals received, the appellant has not adduced any evidence to discharge the onus the Act places on it of proving that the Minister was in error in disallowing them, and, in particular, has not established that the said residences were acquired by the appellant for the purpose of gaining or producing income therefrom, other than the nominal rental set to meet the convenience of the shareholder occupants.
4 The appeals accordingly are dismissed.
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