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

WILLIAM C FINCH Operating Finch’s Place (Commercial Camp) For the Year Ended December 31, 1972 INCOME $ 165 EXPENSES Camp licence $ 20 Realty taxes 83 Repairs 89 Propane gas 58 Gas and oil 51 General maintenance 165 Depreciation 1,523 1,989 NET LOSS ($1,824) NOTE: Prepared from the records of the company and supplementary information furnished without independent audit. WILLIAM C FINCH OPERATING FINCH'S PLACE (COMMERCIAL CAMP) STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1973 INCOME $ 150 EXPENSES Camp licence and registration fees $ 77 Realty taxes 106 Repairs 110 Propane gas. 23 Gas and oil 105 General maintenance 266 Depreciation 1,490 2,177 NET LOSS ($2,027) NOTE: Prepared from the records of the company and supplementary information furnished without independent audit. ...

Mr Pike was under the impression that merely showing that a profit could be made from an operation in some year — (in fact that a profit was possible) — legitimitized all prior expenditures of the operation as deductible against other income in the years in which they were incurred. ... In my mind that general proposition — the alleged immediate deductibility of operation losses from other income — is the genesis of the difficulty encountered by this taxpayer. ... Sustained losses for a period of five years or more — even if a portion of that time is admitted to have been as a hobby — could also militate against the appellant. ...

At the time of the transaction Mr Fred Berman was the general manager of Commercial Steel & Metals Ltd. ... Canada Trust is the registered owner of one sixth of the isued shares of Commercial Steel & Metals Ltd. 2. ... Mr Fred Berman gave the history of Commercial Steel & Metals Ltd and an idea about its assets. ...

Lake have “in writing” stated separate & living apart at a different address and 7 corresponding files from J.B. ... Regards (Sgd) Quentin Feb. 28/75 Quentin — The arrangement on the payments will be O.K. — to total $10,000 for the year. ... Jean Formerly (510 + 320) but since two rent increases it is better for me to go (530 + 300) So last cheque was 300- 30.00 = $270.00 (ski boots) Are you still paying Terry an income? ...

The respondent, on June 1, 1977, reassessed so as to treat the sale of the property as being of an income nature, and made the following adjustment to the 1974 return of the appellant: Gain on sale of land $103,482 Less: Taxable Capital Gain Reported 25,741 Additional Income—1974 $ 77,741 Contentions For the appellant: —The Company purchased the land for use in its business and not for resale. ... The taxpayer was not in a position in 1970 to commence operations on the prefabricating plant, but wanted the location as a starting point. — Albrecht was the driving force in the company and he suffered a very serious car accident in July 1973. ... The financial statements of the company for these two years ended July 31, can be summarized as: 1974 1975 Sales $1,485,965 $1,000,301 Sales Net Operating Income $ 100,066 $ 65,434 Net Operating Income Gain on sale of fixed assets $ 103,917' (Identified as the gain on the subject property) The activity in ‘‘building lots” during the fiscal year ended July 31, 1974 may be reconstructed from the available financial statements to show in summary: Building lots inventory at cost—August 1,1973 $182,342 Less cost of subject property included therein 41,000 $141,342 PURCHASES OF BUILDING LOTS AT COST DURING THE YEAR 355,562 $496,904 Used in home construction during the year (at cost) 192,254 Building lot inventory at cost—July 31,1974 $304,650 Argument Counsel for the appellant proposed that the rationale for both the purchase and the sale of the land complied precisely with situations in which the gains were held to be on capital account for income tax purposes. ...

The financial statements which produced the losses in question are reproduced: F L JOHNSON “REGISTERED ANGUS” FARM INCOME AND EXPENSE 1973 INCOME Rental $1,000 $ Tax Rebate 163 1,163 EXPENSES Cattle Purchases 1,894 Feed and Seed 195 Insurance 258 Repairs and Maintenance 71 Taxes 333 Mortgage Interest 2,124 Loan Interest 296 Utilities 133 Telephone 94 Casual Wages 1,450 Truck Expense Gas and Oil $240 Repair and Maintenance 223 Insurance and Licence 155 618 7,466 — NET LOSS BEFORE DEPRECIATION ($6,303) DEPRECIATION—House $ 657 —Buildings 1,223 —Truck 325 —Equipment 27 2,232 ($8,535) LESS: Personal Consumption 450 ($8,085) DEPRECIATION FRAME SCHEDULE EQUIPMENT LAND HOUSE BUILDINGS TRUCK BUS PORTION Addition—1973 $135 $45,213 $6,566 $12,225 $1,082 Depreciation 27 657 1,223 325 $108 $45,213 $5,909 $11,002 $ 757 F L JOHNSON “REGISTERED ANGUS” FARM INCOME AND EXPENSE 1974 INCOME Rent $1,000 Cattle 892 892 Tax Rebate 178 $ 2,070 EXPENSES Cattle Purchases 1,851 Pasture Rent 136 Veterinary Service 148 Feed and Seed 547 General Repair and Maintenance 492 Building Repairs 393 Small Tools and Supplies 199 Casual Labour 1,825 Mortgage Interest 3,844 Loan Interest 371 Utilities 321 Phone 187 Insurance and Taxes 320 Truck Expenses Gas and Oil $331 Repairs and Maintenance 489 Insurance and Licence 192 1,012 11,646 NET LOSS BEFORE DEPRECIATION ($ 9,576) DEPRECIATION—House 591 —Buildings 1,100 —Truck 227 —Equipment 82 2,000 ($11,576) LESS: Personal Consumption 325 ($11,251) DEPRECIATION FRAME SCHEDULE LAND EQUIPMENT HOUSE BUILDINGS TRUCK BUS PORTION BALANCE—Jan. 1, 1974 $45,213 $108 $5,909 $11,002 $757 Addition — 300 $408 Depreciation — 82 591 1,100 227 BALANCE $45,213 $326 $5,318 $ 9,902 $530 Contentions The appellant’s position was that he was entitled to all of the amounts claimed since he had entered the operation with every intention of making it a viable going concern. ...

From the above I have established that I am an independent contractor: — I was under no restrictions in my field of endeavour. — I was able to provide the same services independently and without restrictions at different establishments at the same time. — No actual control other than as to the general type of course was exercised over me. ... Accordingly, he essentially went out and actively pursued — indeed sold — his expertise to various schools under differing arrangements and at different times. ... For that result, to some degree he lays the blame on Revenue Canada for not allowing the expenses he incurred — at least those he claimed. ...

On Septemer 21, 1972 by agreement with other investors, Merban acquired an option to purchase 375,000 shares of Kaps Transport Limited @ $10 per share, (Exhibit A-8) 2. ... I would recommend that our participation be structured as a term loan for 3 years of $2.5 million (equal to $5.56/Kaps share) at Prime + /2 % and a $1 million 6V2 % preferred share investment put up by TD Capital Group. ... (c) The common shares in MKH were to be issued for a total consideration of $1,250,000 as follows: Merban $1,021,500 Reinhold Kapchinsky $ 125,500 Casamont Limited 112,500 7. ...

It was alleged by the Minister that: — at all material times the appellant was closely involved in the operation of the various businesses of E L Morash and operated them when he was away attending other business interests; — beginning in 1974 the appellant made small regular deposits of cash to accounts at Central and Eastern Trust Company and its predecessors; — the appellant at all material times had signing authority with respect to Mr Mo- rash’s businesses; — the deposits totalling $36,998.43 represented income from the businesses with which the appellant was associated; — the appellant in 1977 had an apparent net worth totalling $170,603 composed of the following: Cash and GIC’s $ 82,603 Residence 65,000 Furniture 15,000 Vehicle 8,000 $170,603 — the appellant had no liabilities in 1977. ... The appellant contended: — she had inherited some money from her late husband and realized further amounts from the sale of furniture from her Toronto home. — she had kept substantial amounts of cash at home and deposited amounts in the bank only as required for particular expenditures. ... At no time was she in business for herself as an owner or principal. — she had agreed to lend money to Mr Morash as he required for business purposes, and these loans were frequently made and frequently repaid. ...

As you are aware, Mr Gowling’s salary is $27,000 per annum payable weekly plus a car allowance of $125 a month and I understand that the appropriate amounts will continue to be paid to Mr Gowling. 3.6 On May 1, 1974, the following agreement (Exhibit R-1) was signed by the appellant: I hereby acknowledge having received from Dale’s of Montreal Ltd. the sum of $3,500 in full and final settlement of all amounts due to me for salary and fringe benefits to date, including vacation pay and allowances and in full and final settlement of any and all claims of any nature whatsoever that I may have against Dale’s of Montreal Ltd and subsidiary companies arising out of my engagement by the said companies as a comptroller including a claim for damages for one year’s salary made on my behalf by my attorneys, Ogilvy, Cope, Porteous, Hansard, Marler, Montgomery & Renault, and also including any claim for moving charges, purchase of a home, or any other expenses and also any alleged damages to my reputation as a comptroller and as a chartered accountant. ... Law — Jurisprudence — Comments 4.1 Subsection 6(3) of the Income Tax Act, SC 1970-71-72, c 63, as amended, is the main section involved in this case. 6. (3) An amount received by one person from another (a) during a period while the payee was an officer of, or in the employment of, the payer, or (b) on account or in lieu of payment of, or in satisfaction of, an obligation arising out of an agreement made by the payer with the payee immediately prior to, during or immediately after a period that the payee was an officer of, or in the employment of, the payer, shall be deemed, for the purposes of section 5, to be remuneration for the payee’s services rendered as an officer or during the period of employment, unless it is established that, irrespective of when the agreement, if any, under which the amount was received was made or the form or legal effect thereof, it cannot reasonably be regarded as having been received (c) aS consideration or partial consideration for accepting the office or entering into the contract of employment, (d) aS remuneration or partial remuneration for services as an officer or under the contract of employment, or (e) in consideration or partial consideration for a covenant with reference to what the officer or employee is, or is not, to do before or after the termination of the employment. 4.2 The following fifteen judgments were cited by the parties: Robert B Curran v MNR, [1959] CTC 416; 59 DTC 1247; Louis Richstone v Her Majesty the Queen, [1974] CTC 155; 74 DTC 6129; Her Majesty the Queen v Robert B Atkins, [1976] CTC 497; 76 DTC 6258; Yvon A Alexander v MNR, [1973] CTC 405; 73 DTC 5321; Roddy Choquette v Her Majesty the Queen, [1974] CTC 742; 74 DTC 6563; Peter Moss v MNR, [1963] CTC 535: 63 DTC 1359; Thomas G Quance v Her Majesty the Queen, [1974] CTC 225; 74 DTC 6210; Louis Richstone v MNR, [1972] CTC 265; 72 DTC 6232; Her Majesty the Queen v Robert B Atkins, [1975] CTC 377; 75 DTC 5263; Paul Girouard v MNR, [1977] CTC 2588; 78 DTC 1011; David G Hughes v MNR, [1970] Tax ABC 162; 70 DTC 1114; Patrick D McTaggart-Cowan v MNR, [1974] CTC 2076; 74 DTC 1058; William Unaitis v MNR, [1978] CTC 2279; 78 DTC 1193; MNR v Gordon W Pannell, [1973] CTC 81; 73 DTC 5038; Ralph Pickard Bell v MNR, [1962] CTC 253; 62 DTC 1155. 4.3 Comments First it is clear to the Board that the amount of $6,000 had been received “during a period while the payee was...■» in the employment of the payer’’ according to paragraph 6(3)(a) of the Income Tax Act. ...