Search - 包建铎违纪违法案件以案促改以案促治专题组织生活会 个人对照检查

(f) In the course of auditing the appellant’s expenses for his 1973 taxation year, the respondent noted that the amounts claimed by him in respect of gasoline, oil, diesel, maintenance, repair and tire expenses were greater than the amounts computed from the receipts submitted by the appellant’s suppliers. $ 7,832.13 Gasoline, oil, diesel $ 6,366.70 Maintenance and repairs $ 1,292.10 Tires $15,490.93 (g) As a result of the audit of the appellant’s income and expenses for his 1973 taxation year the respondent added the following amounts to the appellant’s previously reported net income of $4,999: $11,891.25 $ 989.62 $ 3,114.00 $15,995.00 (h) In the course of auditing the appellant’s income for his 1974 taxation year, the respondent noted that he had failed to include the following amounts in his income: $5,726.63 Eastern Waste Paper Ltd $2,987.48 Other unreported income (income reconciliation) (i) In the course of auditing the appellant’s expenses for his 1974 taxation year, the respondent noted that the amounts claimed by him in respect of gasoline, oil, diesel, maintenance, repair and tire expenses were less than the amounts computed from the receipts submitted by the appellant’s suppliers. The respondent therefore increased the expenses initially claimed by the appellant. $10,326.42 Gasoline, oil, diesel $12,126.96 Maintenance and repairs $ 3,102.37 Tires (j) As a result of the audit of the appellant’s income and expenses for his 1974 taxation year, the respondent added the following amounts to the appellant’s previously reported net income of $6,455: $5,726.63 $2,987.48 ($3,582.00) $5,132.11 (k) In the course of auditing the appellant’s income for his 1975 taxation year, the respondent noted that he had failed to include the following amounts in his income: $3,998.05 Eastern Waste Paper Ltd ($2,443.72) Income reconciliation $1,554.33 (l) In the course of auditing the appellant’s expenses for his 1975 taxation year, the respondent noted that the amounts claimed by him in respect of gasoline, oil, diesel, maintenance, repair and tire expenses were greater than the amounts computed from the receipts submitted by the appellant’s suppliers. $ 9,867.26 Gasoline, oil, diesel $12,543.88 Maintenance and repairs $ 3,896.25 Tires The respondent also noted that the amounts claimed by the appellant for dumping expenses were greater than the amounts computed from receipts submitted by the municipality of Lac St-Charles, the operator of the dump. $5,500 Expenses claimed $1,287 Vouchers $1,500 Expenses allowed $4,000 Difference (m) As a result of the audit of the appellant’s income and expense for his 1975 taxation year, the respondent added the following amounts to the appellant’s previously reported total income of $7,500: $ 1,554.33 $ 4,000.00 $ 5,945.61 $11,499.94 (n) During the taxation years in question, the appellant had maintained no accounting records of his business income and expenses. ... (p) As shown by the following schedule, the difference between the income reported by the appellant for his 1973, 1974, and 1975 taxation years and the income later assessed by the respondent is substantial: Income Income Reported Assessed Difference 1973 $4,999.00 $20,994.00 $15,995.00 1974 $6,455.00 $11,587.11 $ 5,132.11 1975 $7,500.00 $18,999.94 $11,499.94 In my view, the respondent has proved all the statements made in his reply to the notice of appeal. ...

. /* 3. The Facts 3.1 The appellant was at all material times the principal shareholder of Donald E Keller Limited since May 1, 1970. 3.2 Donald E Keller Limited made payments to Victoria and Grey Trust Company in the amount of $1,572 of interest in each of the appellant’s 1971, 1972 and 1973 taxation years, in respect of a mortgage secured by the appellant’s personal residence. ... Other loans were made in the following years until the incorporation, as it appears in Exhibit A-1: ANALYSIS OF V & G MORTGAGE ADVANCES Date Personal Business Total 1959 Original Mtge $ 2,079 $ 4,921 $ 7,000 1963 Increased Mtg by — 6,180 6,180 1968 Increased Mtg by — 7,530 7,530 Total advances to date $ 2,079 $18,631 $20,710 Percentages 10% 90% 100% 3.7 On March 5, 1968, an indenture in pursuance of the Short Form of Mortgages Act, between the mortgagor (the appellant and his wife, Joyce Keller, joint tenants) and the mortgagee (Victoria and Grey Trust Company) was signed concerning an amount of $15,000 (Exhibit R-1). 3.8 The different loans were made to buy equipment. ... Law — Jurisprudence — Comments 4.1 The most important subsection of the new Act concerning the case at bar is 15(1) (subsection 8(1) of the old Act). ...

The firm had the usual type of agreement that in the event of one of the partners ceasing to be a member of the partnership — either by death or departure for other reasons — the partnership would carry on. ... One of the subsections — 37(2) — provides that he must not have been a partner or a proprietor in any other business. ... I think that he made his choice in 1969 and the preceding years and is now unfortunately — since it has been accepted by the Department — bound by that result. ...

One of the figures appearing in this document is “Cost of House — $35,309.85”. ... The abstract of title for the two cottage properties at Mineville, Halifax County, Nova Scotia, is as follows: Warranty Deed Lake Echo Forest Park Limited 2975/24 — to — August 21, 1974 Leonard P Carrigan and wife, January 13, 1976 Margaret Theresa Anne Carrigan, $1.00 as Joint Tenants Warranty Deed Lake Echo Forest Park Limited 2975/28 — to — August 21, 1974 Leonard P Carrigan and wife, January 13, 1976 Margaret Theresa Anne Carrigan, $1.00 as Joint Tenants Warranty Deed Leonard P Carrigan and wife, 3122/473 Margaret Theresa Anne Carrigan, June 7, 1977 — to — June 10, 1977 Margaret Theresa Anne Carrigan, $1.00 The abstract of title for the family home at 15 Charlois Court, Dartmouth, Nova Scotia, is as follows: This document clearly sets forth the dealings with the properties at issue in this appeal. ... Warranty Deed Glendale Building Company Limited 2707/440 — to — August 23, 1973 Lake Echo Forest Park Limited September 27, 1973 $1.00 Warranty Deed Lake Echo Forest Park Limited 2771/296 — to — September 28, 1973 L P Carrigan April 8, 1974 $1.00 Warranty Deed L P Carrigan 2824/166 — to — August 23, 1974 Leonard P Carrigan and wife, August 29, 1974 Margaret Theresa Anne Carrigan, $1.00 as Joint Tenants Warranty Deed Leonard P Carrigan and wife, 3122/992 Margaret Theresa Anne Carrigan, June 7, 1977 — to — June 13, 1977 Margaret Theresa Anne Carrigan $1.00 What, then, was the value of 15 Charlois Court on August 23, 1974 and on June 7, 1977? ...

This was allocated in the following manner to the 1972 through 1976 taxation years: Church of Christ Development Co Ltd Reconciliation of Income 1972 — Net Profits previously reported $ 25,316.29 — Additional Profits- per Revised Balance Sheet 92,733.70 — Revised Taxable Income — (1/5 $590,249.92) $118,049.99 — Adjustments to Active Business Income (118,049.99) — Adjstments to Canadian Investment Income 29,248.26 — Taxable Dividends Deduction (2,189.35) — Further Revised Taxable Income 27,058.91 1973 — Net Profits previously reported 37,886.16 — Additional Profits- per Revised Balance Sheet 80,162.83 — Revised Taxable Income — (1/5 x $590,249.92) 118,049.99 — Adjustments to Active Business Income (20,301.69) — Adjstments to Canadian Investment Income 47,985.34 — Taxable Dividends Deduction (6,198.77) — Further Revised Taxable Income 139,534.87 1974 — Net Profits previously reported 19,428.64 — Additional Profits- per Revised Balance Sheet 98,621.34 — Revised Taxable Income — (1/5 x $590,249.92) 118,049.99 — Adjustments to Active Business Income (37,536.16) — Adjstments to Canadian Investment Income 43,374.62 — Taxable Dividends Deduction (11,864.85) — Further Revised Taxable Income 167,827.09 1975 — Net Profits previously reported 26,085.04 — Additional Profits- per Revised Balance Sheet 91,964.94 — Revised Taxable Income — (1/5 x $590,249.92) 118,049.99 — Adjustments to Active Business Income (76,127.21) — Adjustments to Canadian Investment Income 96,645.09 — Taxable Dividends Deduction (21,613.11) — Further Revised Taxable Income 114,954.75 1976 — Net Profits previously reported 35,619.76 — Additional Profits- per Revised Balance Sheet 82,430.22 — Revised Taxable Income — (1/5 x $590,249.92) 118,049.99 — Adjustments to Active Business Income (135,714.53) — Adjustments to Canadian Investment Income 135,033.58 — Taxable Dividends Deduction (19,035.10) — Further Revised Taxable Income 98,333.93 Further, the respondent added a taxable capital gain of $47,313.35 to the appellant’s 1974 tax return. ... The following reply dated June 5, 1958 had been received by the Company: DEPARTMENT OF NATIONAL REVENUE — TAXATION DIVISION 444 Sussex Drive — Ottawa 2, Ont 5th June, 1958. ... The corporation tax returns for these years were also made available to the Board and each one did contain a set of financial statements — Operating Statement and Balance Sheet — but in the appropriate space provided, it was noted by the appellant that this was a “Non-Profit” corporation — and no tax was indicated as payable. ...

In his income tax return for the relevant taxation years, the Appellant declares the following employment income and professional income: Employment Professional Income Income 1972 $24,448 — 1973 $16,917 $ 3,036 1974 $19,893 $ 3,323 1975 $22,919 $11,034 3. ... In computing his income for the relevant taxation years, the Appellant claimed to deduct the following amounts as alimony or other allowance payable on a periodic basis for the maintenance of his wife and children: 1972 $ 9,397.52 1973 $ 5,201.15 1974 $ 7,906.42 1975 $11,208.93 5. ... The Appellant also purportedly paid to his wife’s creditors the following amounts in respect of specific actual expenses including rent, light, heat and water, medical expenses, education and income taxes; 1972 $ 9,397.52 1973 $ 5,201.15 1974 $ 7,906.42 1975 $11,208.93 (B) STATUTORY DISPOSITIONS AND REASONS: 7. ...

There was further evidence that all three partners filed their tax returns based on a / / / split of the partnership income. The accounting records and cancelled cheques presented, together with the testimony Pierre Couture, support the conclusion that the amount of income received by the appellant’s partners was based upon a 65-20-15% split of that income, not upon the alleged / / / arrangement. ... However, another schedule (apparently in the handwriting of the appellant and bearing no 53) portrays alleged accounts receivable at certain dates — and at December 31/71 the breakdown between the partners of these “accounts receivable” is calculated on the basis of 60/20/20, not 1/3, 1 / 1 / which would be required to support the appellant’s assertion. ...

The impact of losses claimed had the following results in respect of the profit for the year ended March 31, 1967: Rental income — $27,790.00 Sundry expenses — 17,405.84 Net profit before depreciation — 10,384.16 Terminal loss — 28,105.97 Net loss for the year — $17,721.81 The appellant allocated the proceeds of sale of the shopping centre between depreciable and non-depreciable assets as follows: Land Blacktop Buildings Total Capital Cost $30,000.00 $2,000.00 $ 68,000.00 $100,000.00 Additions — 5,992.40 61,363.57 67,355.97 30,000.00 7,992.40 129,363.57 167,355.97 Net Proceeds 57,000.00 7,125.00 102,125.00 166,250.00 Terminal loss/ Capital Gain $27,000.00 $ 867.40 $ 27,238.57 $ 1,105.97 Mr Schaff appeared to be an unsophisticated businessman who bought a shopping centre which he thought he could handle as an investment. ... An index of schedules (Exhibit A-13) shows the legend of properties and projects: LEGEND OF PROJECTS AND PROPERTIES (A) Northwoods Subdivision — 98 houses — north side Sheppard Ave between Keele and Jane (B) Downsview Subdivision — 16 houses — Jane and Sheppard area (C) Islington Acres —518 houses — Finch west of Weston Road (D) Lawrence Terrace Apartments —410 suites — 1440 and 1442 Law- rence Ave West at Keele St (E) Sheppard Gardens Maisonettes —148 units —north side of Shep- pard Ave between Keele and Jane (F) Factory — 2400 Finch Ave West—169,000 Square Feet (G) Claxton Gates Apartments —175 suites —111 Raglan Ave (H) Lawrence Park Apartments —346 suites — 1577 Lawrence Ave W (1) Van Lee Apartments —207 suites — McCowan Rd north of Eglinton (J) Factory — 2420 Finch Ave W — 29,000 Square Feet (K) 2246 Keele Street — 22 suites (L) 2417 Keele Street — 11 suites (M) Farnham Court Apartments — 92 suites — Farnham and Yonge St (N)(O) 467 Roncesvalles and 54 Raglan — 32 suites (P) 34-42 Maitland Ave — 52 suites (Q) 5320-24 Yonge Street — Stores with office space and apartments on second floor (R) Lawrence and Susan —225 suites — Lawrence Ave East Apartments at Susan (S) Islington Avenue — 28 houses Schedule #1 attached to the above-mentioned Exhibit A-13 gives a summary of operations—sales of serviced lots and construction and sale of residential housing—and we can see the net proceeds on operations and the total proceeds available for investment. ... In James Hobson & Sons, Ltd v Newall (HM Inspector of Taxes), 37 TC 609, Harman, J said at page 615: This is another of these cases about builders. ...

In filing his income tax returns for the relevant years, the appellant attempted to deduct the following amounts as a non-capital loss with respect to a payment by the appellant on a guarantee: 1974 — $ 2,460.90 1975 — 21,883.27 1975 — 4,305.08 1977 — 11,945.94 $40,595.19 The Minister categorized the loss as a net capital loss and recomputed the appellant’s income in the relevant taxation years as follows: Proceeds of Disposition Nil Adjusted Cost Base $40,595 Capital Loss $40,595 Allowable Capital Loss (50%) $20,297 Applied to 1973* $1,000 Applied to 1974 1,000 Applied to 1975 1,000 Applied to 1976 1,000 Applied to 1977 2,000 $ 6,000 Carry Forward $14,297 ‘Statute Barred. ... At the date the appellant provided the guarantee, he incurred only a contingent liability — no funds had actually changed hands. ... It is interesting to note that the evidence in this current matter shows many similarities — the building under construction by Wenfair was to be sold — not retained and rented as an investment. ...

In assessing Appellant for the 1976, 1977 and 1978 taxation years, Respondent relied on the following presumptions of fact, inter alia: (a) Since 1971, Appellant’s principal occupation has been the construction, sale and management of his residential rental buildings; (b) During the taxation years in question, Appellant disposed of seven of his residential rental buildings in Longueuil and St-Hubert, in particular: Date of Year of Address Construction Sale Sale LONGUEUIL 1920 rue Lavallée 1-5-1971 1976 1180-84 rue Lavallée 1-1-1972 1976 ST-HUBERT 515 rue Lamarre 1-5-1974 1977 525 rue Lamarre 1-9-1974 1977 535 rue Lamarre 1-12-1974 1978 555 rue Lamarre in 1975 1978 575 rue Lamarre in 1975 — 2214 rue Séguin in 1976 — 2234 rue Séguin in 1976 — 2284 rue Séguin in 1976 — 1385 rue Nobert in 1976 — 1420 rue Beauregard in 1977 — 10,120 boul Racine in 1977 — (c) Appellant sold the said properties during the period in question in order to finance the construction of apartment buildings on new properties purchased during his 1976, 1977 and 1978 taxation years; (d) The said properties were purchased and sold by Appellant with the benefit of his knowledge as a professional carpenter and building-permit holder who knew a great deal about the construction business; (e) At the time he purchased the said properties Appellant expected to resell them at a profit, and this was one of the chief factors that induced him to buy them; (f) When he purchased the said properties Appellant’s secondary if not principal intention was to make a profit on the sale of the residential rental buildilngs, as he in fact did during the taxation years in question. ...