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

I might suggest Counsel support such fact and not allege presumptions — 158(1). ... Proof of Translation of Law — (a) Minister’s responsibility by statute — procedural application. (1) Establish, pursuant to 163(3) proof of, by ways of, indisputable evidence (facts), willfull attempt, and (not either or, but both) tax sought to be evaded (supported by dollar amount — fixation — Notice of Assessment, or residual balance sought to be evaded). (2) Indisputable proof of a return not filed by the taxpayer pursuant to 150(1), etc. ... Only when numbers (1) & (2) are accomplished is the taxpayer liable to 50%. ...

Lock wood 267.41 August 1-December 31, 1977 Rental Income $ 800.00 Expenses $2,130.70 Less: % Personal 1,065.35 1,065.35 (265.35) Capital Cost Allowance $(1,523.00) Net Loss 1,788.35 Total Net Loss $ 2,055.76 3.02 The respondent did not permit the appellant to deduct the amount of $2,055.76 as a rental loss in his 1977 taxation year and recomputed the appellant’s income as follows: January 1-July 31, 1977 Rental Income $1,120.00 Less: Expenses $2,482.23 Less: Personal Portion 2,234.00 248.23 Rental Profit 871.77 A. Appellant’s Share (1 Z>) $ 435.88 August 1-December 31, 1977 Rental Income $ 800.000 Expenses $2,130.70 Personal Portion 1,917.63 213.07 Rental Profit 586.93 Less: Capital Cost Allowance 190.10 396.83 Less: Interest Expense 63.99 Net Rental Profit $ 322.84 B. Appellant’s Share (100%) $322.84 Total Net Rental Profit: (A & B) $ 758.72 3.03 Concerning the period from January 1 to July 31, 1977, the expenses of $2,482.23 claimed by the appellant are detailed as follows. ...

The data given in his report was as follows: (3) Lot 149 —4.5 acres — No buildings — Unserviced — Located in the South East portion, or Lakeview subdivision —Sold in 1971 for $26,000 —Sale price per acre—$5,777.87 (4) Lots 29 & 30, Plan Lethbridge 4368K — 10.0 acres — No building — Unserviced — Located in Lakeview subdivision, this parcel was subdivided and developed in 1972 —Sold in 1972 for $65,000 —Sale price per acre—$46,500 (sic) (5) Lots 1 to 20, Block 7, Plan 6799 JK —4.60 acres (net) — No buildings — Unserviced — Located in Lakeview subdivision, this property was surveyed for development prior to sale and was developed into twenty (20) residential building lots —Sold in 1972 for $40,000 —Sale price per acre—$8,675.65 No “3” was sold pursuant to an agreement of sale, the terms of which were not disclosed. ...

This was comprised as follows: Sale Gross Project Closing Date Proceeds Profit E2 June 25, 1976 $ 48,574 $ 10,459 E9 June 30, 1976 75,450 10,743 E15 July 1, 1976 148,931 $ 29,480 $272,955 $ 50,682 House Sales (3) — made Apr. 1/76- July 1/76 $272,955 Lot Sale (1) — with a cost of $27,571 27,000 Renovations and Repairs 106,462 $406,417 (8) In January 1977, a nine month interim financial statement to December 31, 1976 was prepared for management and banking purposes. ... (D) The following inventory was owned by the company: Subdivision Lots — 31 $ 831,298 Unsold Houses — 17 956,319 48 $1,787,617 (12) To finance operations in the March 31, 1977 year the following funds had been utilized: Bank Loan $100,000 Realization of Agreement for Sale 150,000 Loans from Peter Brazolot 47,000 $297,000 (13) A management salary charge of $27,000 was made for the March 31, 1977 year. ... These are — The Queen v V & R Enterprises Limited, [1979] CTC 465; 79 DTC 5399; Toronto Heel Limited v M.N.R., [1980] CTC 2277; 80 DTC 1250. ...

Automobile 1/3/76 10/9/76 Less personal use 25% instead of 20% $ 699.73 $ 874.65 $174.92 NIL 2. Meals 2,530.27 1,200.00 800.00 $ 530.27 3. Travel and entertainment expenses 4,397.35 1,000.00 500.00 2,897.35 TOTAL DISALLOWED $3,427.62 1974 1. Automobile 1/3/76 10/9/76 (a) Upkeep and repairs $ 737.79 $ 405.92 $331.87 NIL (b) less personal use, 25% instead of 20% 671.94 756.96 85.02 NIL 2. ...

The respondent asserted that: — Bevan Bonthron purchased 502 of the common shares of Bonthron & Sons Ltd, from the Estate of Harold J Bonthron during the appellant’s 1975 taxation year at a price of $87.50 per share, but denies that the sale of shares to Bevan Bonthron was on an arm’s length basis; — the appellant failed to include any amount as a taxable capital gain from the disposition of 502 common shares of Bonthron & Sons Ltd, the appellant, to the respondent’s knowledge, employing an adjusted cost base equivalent to the proceeds of disposition of $43,483.24 in computing a nil gain or loss. ... Maintainable Earnings before Tax $7,416 Income Taxes @ 25% 1,854 Net Maintainable Earnings $5,562 Less: Dividends on Preferred Shares 210 Common Share Earnings $5,352 Earnings Multipliers 7X 8>< Value Range $37,464 $42,816 Value Range per Common Share (rounded) $ 37.50 $ 43.00 Argument Counsel for the appellant stressed that Mr Morrison was entitled to adopt an optimistic posture in valuing the shares. ... The critical thing was the value at December 31, 1971 — $40.14 in the opinion of the Minister — and the financial results for the years 1970 and 1971 could not be ignored in determining that value. ...

May 1975 $ 95.00 Dr C Peterson No 3. June 1975 $ 96.30 Hinton Carpet Service No 4. July 1975 $ 865.75 Patton’s Warehouse No (Freezer, washer & dryer) 5. ... August 1975 $ 582.52 McCutcheon’s Lumber No (Lumberyard) 9. October 1975 $ 700.00 B Richardson No 10. ...

Since considerable reference was made to the appellant’s 1973 and 1974 financial statements, it would appear best to reproduce the “Statement of Earnings and Retained Earnings” of the appellant for the years ending December 31, 1973 and 1974: HADY CONSTRUCTION (1971) LIMITED STATEMENT OF EARNINGS AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1974 REVENUE (note 1) 1974 1975 $ $ Construction revenue 388,560 128,091 Repairs and maintenance revenue 17,272 26,778 405,832 154,869 LOSS ON RENTAL OPERATIONS (Schedule) 46,653 12,537 GENERAL AND ADMINISTRATIVE EXPENSES Salaries and employee benefits 50,552 39,810 Management fees 5,250 6,600 Rent 2,458 4,951 Auto and truck expense 6,523 5,653 Depreciation 3,247 4,634 Audit and legal 2,450 3,790 Utilities 1,015 946 Insurance 1,125 313 Bank charges and interest 10,042 8,068 Mortgage interest 4,667 6,782 Miscellaneous 3,560 2,272 90,889 85,819 268,290 58,513 PROVISION FOR INCOME TAXES Current 117,200 7,900 Deferred (1,100) 13,500 116,100 21,400 NET EARNINGS FOR THE YEAR 152,190 37,113 RETAINED EARNINGS—BEGINNING OF YEAR 42,527 5,414 RETAINED EARNINGS—END OF YEAR 194,717 42,527 The Schedule or Rental Operations for each of the years 1973 and 1974 are as follows: HADY CONSTRUCTION (1971) LIMITED SCHEDULE OF RENTAL OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1973 $ RENTAL INCOME 9,262 RENTAL EXPENSES Amortization of lease commissions 974 Depreciation 4,983 Mortgage interest 7,010 Realty taxes 1,870 Repairs and maintenance 6,962 21,799 LOSS ON RENTAL OPERATIONS 12,537 HADY CONSTRUCTION (1971) LIMITED SCHEDULE OF RENTAL OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1974 $ RENTAL INCOME 61,896 RENTAL EXPENSES Amortization of deferred charges 1,181 Depreciation 20,407 Mortgage interest 33,976 Realty taxes 1,627 Repairs and maintenance 38,571 Bad debt expense 12,787 108,549 LOSS ON RENTAL OPERATIONS 46,653 The balance sheet for each year showed the following assets for 1973 and 1974: ASSETS 1974 1973 CURRENT ASSETS $ $ Accounts receivable (note 2) 292,704 180,022 Prepaid expenses and deposits 3,020 1,501 Unbilled costs and profits (note 1) 461,966 30,582 Non-interest bearing advance to employee 2,000 759,690 212,105 REVENUE PRODUCING PROPERTIES (note 2) —at cost 923,180 510,997 Accumulated depreciation 25,390 4,983 497,790 506,014 FIXED ASSETS—at cost 20,467 20,467 Accumulated depreciation 12,840 9,593 7,627 10,874 DEFERRED CHARGES (note 1)—at cost, less accumulated amortization 10,915 13,353 1,276,022 742,346 It is to be noted that the current assets really are only a receivable in some form or another and that there are fixed assets having an undepreciated capital cost of only a few thousand dollars. ... Also, if there were separate statements and earnings and retained earnings instead of just one and if repairs and maintenance revenue were included with construction revenue, the statements would be as follows: 1973 1974 Construction revenue 154,869 405,832 Expenses 83,819 90,889 — Profit 71,050 314,943 Rental revenue 9,262 61,896 Expenses 21,799 108,549 (LOSS) 12,537 46,653 It follows from the two above statements that there obviously would be no retained earnings from rental operations. ...

In his returns for the said years, he stated as present employer — “Pioneer Life”. ... In filing his 1975 T-1 tax return, the appellant claimed and the respondent subsequently allowed the following expenses: 1975 Expense claimed (as filed Item per return) Allowed Disallowed Car Expenses: Interest $ Nil $ 417.48 Insurance Nil 137.67 Gasoline 1,109.33 367.87 Maintenance & repairs 999.92 770.35 CCA 1,590.00 1,184.02 $3,699.25 $2,877.39 Less 35% personal use Nil 1,007.09 $3,699.25 $1,870.30 $1,828.95 Licence 133.00 133.00 Nil Parking 45.00 45.00 Nil Car Washes 33.50 33.50 Nil Advertising & Promotion 82.00 90.25- 8.25 Travel & Accommodation 208.78 Nil 208.78 Entertainment 506.19 269.32 236.87 Training allowance 190.00 190.00 Nil Telephone 75.35 29.55 45.80 Office Equipment & Supplies 854.50 10.37 844.13 Winnipeg Flying Club 646.58 318.01 328.57 $6,474.15 $2,989.30 $3,484.85 5. ... With respect to “Fire & Liability Insurance”, I find that this is not a legitimate expense under the circumstances. ...

The contention of the respondent is that for the said year the maximum cca allowable to the appellant was $1,783.88. 3.04 One can read the following figures in the 1974 to 1979 income tax re- turns of the appellant: INCOME EXPENSES LOSS (including cca) 1974 $64.34 (potatoes) $4,414.00 $4,349.66 $3,224.74 (cca) 1975 $1,198.67 (vegetables) $7,227.66 $6,028.99 $3,734.74 (cca) 1976 $626.50 (grinding and chickens) $4,281.73 $3,655.23 1977 $1,059.53 (grinding) $3,155.08 $2,095.55 nil (cca) 1978 nil $6,462.58 $6,462.58 nil (cca) 1979 — — $4,064.00 In 1978, the appellant in his return described his work as “hobby farmer” and explained his “schedule of loss” as follows: James Luchuck Hobby Farmer Schedule of loss Net Loss — 1978 (6,462.58) Claim 78 ($2,500.00) 1 / ($6,432.58 — $2,500) ($1,966.29) ($4,466.29) Loss Forward to 79 ($1,996.29) ($6,462.58) 3.05 In his 1974 return and for the following years, the appellant declared as self-employment: Type of business: Market gardener & drill grinding Principal commodity manufactured or sold or service provided: Fruits and vegetables (onions, potatoes) mechanical repairs, drill grinding machine service. ... Law — Cases at Law — Analysis 4.01 Law The main sections of the Income Tax Act involved in the present case are subsections 31(1) and (2). ...