Teskey T.C.J.:
1 The Appellant in his Notice of Appeal, wherein he appeals his 1990, 1991 and 1992 assessment of income tax, elected the informal procedure.
Issue
2 The sole issue herein is whether F.D.I. Financial Development Inc. (“F.D.I.”), was the beneficial owner of certain rental properties or does it hold a one-half interest in the title to these properties in trust for, or as agent for, the Appellant herein.
Facts
3 For the three years in question, the Appellant reported rental losses on four properties:
1751 Regan Avenue, Coquitlam, B.C.
827 Cottonwood, Coquitlam, B.C.
1337 Cornell Avenue, Coquitlam, B.C.
811 Alerson Avenue, location unknown
4 At the hearing, the Appellant acknowledged that he had no interest whatsoever in 811 Alerson Avenue.
5 There is no evidence whatsoever of anything in writing that might assist the Court, such as:(1) Notes or memorandums or Minutes of shareholders or directors meetings of F.D.I. indicating F.D.I. held the properties in trust.
(2) That the deeds to the properties were anything other than outright conveyances to F.D.I. and apparently nothing therein indicates a trusteeship.
6 F.D.I. has not filed any corporate income tax returns for the years in question. Thus, the only evidence before me is the oral testimony of the Appellant and his former son-in-law, James Thomas Keith Sheedy (“Sheedy”), who is the manager of a family corporation that holds the other one-half interest in F.D.I.
7 It was alleged that F.D.I. had several changes of directorship which were all duly documented in the Corporate Minutes Book for F.D.I.
8 Neither the chartered accountant nor the corporate solicitor for F.D.I. gave evidence on behalf of the Appellant. I therefore assume that their evidence would have been of no benefit to the Appellant and that neither were ever informed of the alleged trusteeship.
9 I am not prepared to find a trust on the sole evidence of the Appellant and Sheedy without some evidence from either the chartered accountant or the corporate lawyer to the effect that right from the start, he or she had been advised that F.D.I. was a trustee of a one-half interest in the properties for the Appellant and the exact terms of the trust.
10 I am sure either the chartered accountant or the lawyer would have immediately advised that a trust declaration should be prepared and executed if either were made aware of a trust.
11 In a non-arm's length situation like this, it is incumbent on the taxpayers to have their affairs in proper order. It is too late to allege a trusteeship, after the fact without written documentation or cogent third party impartial, believable, testimony to make a finding of trust on just the oral testimony of the taxpayer and the other 50 percent representative.
12 The Appellant having failed to convince me that F.D.I. held a one-half interest in the properties as trustee for him, the appeals are dismissed.
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