Archambault T.C.J.:

O’Connor T.C.J. (Orally) .

THE REGISTRAR: Before the Court, case number 96-1390 (IT)G, between Russell Sykes and Her Majesty the Queen. Counsel for the Respondent Tom Torrie.

MR. TORRIE: Your Honour, Mr. Sykes is not here. There has been some correspondence between me and Mr. Sykes, and I think to the Court as well. In a letter dated July 16th, he indicated that he was not going to be showing up. I don’t know if you want to wait the half hour before I make my motion to dismiss or you’ll hear it now.

Beaubier T.C.J. (Orally):

THE REGISTRAR: The first matter this morning is File Number 96- 4792(IT)G, between John Kobitz and Her Majesty The Queen. Mr. Whitmore, counsel for the appellant and Mr. Bouvier, counsel for the respondent.

HIS HONOUR: This appeal, pursuant to the general procedures, was heard at Regina, Saskatchewan, August 24, 1998. The appellant testified. The respondent called Mark Tomczak, the auditor on the case.

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]