Sarchuk T.C.J.:

The Appellant, Gerald J. McConnell has appealed from assessments of tax with respect to his 1986 and 1987 taxation years.

Beaubier T.C.J.:

The Registrar: The next matter. Your Honour, is File Number 95- 3302(IT)G between Herbert Wagar and Her Majesty The Queen. No counsel present for the appellant and counsel for the respondent is Mr. Bouvier.

This appeal, pursuant to the general procedure, was heard at Regina, Saskatchewan, on August 26, 1998. The appellant: his wife. Gladys; and Wagar Farm Equipment Ltd. (WFEL’s) chartered accountant. Rick Kozachenko, all testified.

Rowe T.C.J. (Orally) .

THE REGISTRAR: The court is resumed. The Honourable Judge Rowe is presiding.

First case before the court, 96-1765(IT)I, between Mr. Russell Sykes and Her Majesty the Queen. Appearing for the Appellant, there is no one here at this time; appearing for the Respondent is Ms. Patricia Babcock.

HIS HONOUR: Is there service of your motion for today?

O Connor T.C.J. (Orally):

— PROCEEDINGS COMMENCED AT 10:06 a.m.

THE REGISTRAR: Before the Court, case number 96-1766(IT)G, between Shirley Sykes and Her Majesty the Queen. Counsel for the Respondent Pat Babcock.

Teskey T.C.J.:

The Appellant in its Notice of Appeal wherein it appealed assessments of income tax under Part 1.3 of the Income Tax Act (the "Ac") in respect of its 1990 and 1991 taxation years elected the informal procedure.

Issue

Facts

(1) the Appellant’s fiscal year end was May 31st in the years 1990 and 1991;

Christie A.C.J.T.C.:

These appeals are governed by the Informal Procedure provided for under section 18 and following sections of the Tax Court of Canada Act. The years under review are 1993 and 1994.

The relevant background to and what is in issue in this litigation is set out in paragraphs 8 to 14 inclusive if the Reply to the Notice of Appeal. They read:

Rip T.C.J.:

The issue in this appeal is whether Richard D. Grigg, the appellant exercised the degree of care, diligence and skill as director of Eastern Abrasive and Coatings Limited (“Company”) that a reasonably prudent person would exercised in comparable circumstances to prevent the failure of the Company to remit payroll source deductions during the period December 22, 1992 to November 4, 1993 (“period”).[1]

Christie A.C.J.T.C.:

These appeals are governed by the Informal Procedure prescribed under section 18 and following sections of the Tax Court of Canada Act. The years under review are 1991 to 1995 inclusive.

The Notice of Appeal reads:

Ref: Notice of Appeal to Minister’s Decision of Income Tax Re-Assessment for 1991, 92, 93, 94 and 1995

This notice of Appeal is under the Informal Procedure.

Mogan T.C.J.:

Sarchuk T.C.J.:

These are appeals by Burkhard Michael Nowak (the Appellant) from assessments of tax with respect to his 1987 and 1988 taxation years.

A number of different but overlapping issues have been raised by the Appellant. To minimize repetition to the extent possible, I propose to set out those facts which I perceive to be undisputed, in more or less chronological order and then deal with each issue separately. The Appellant was the only witness to testify.