Tax court of Canada | Tax | Income tax | Business and property income
During most of 2008 taxation year, taxpayer worked as server in restaurant and sometimes for employer’s off-site catering. Taxpayer reported employment income of $26,868.48 and claimed employment expenses of $12,136.40. Taxpayer also reported $2,419 in administrative fees and safety deposit box fees claimed against investment income. Upon bankruptcy of taxpayer’s truck driver husband, taxpayer bought truck and went into trucking business for husband’s employment. Taxpayer’s 2009 income tax return reported net rental loss of $4,701 and reported gross trucking revenue of $38,565 with claimed expenses reducing business income to $7,428.55. Minister reassessed taxpayer under Income Tax Act, disallowing all claimed expenses for 2008 taxation year and, for 2009 taxation year, disallowing rental loss and all trucking business expenses while levying gross negligence penalties for both years. Taxpayer appealed. Appeal allowed in part. Taxpayer admitted that she did not have any investment income or know what claimed fees were for, so there was no basis for those claimed deductions. Taxpayer filed variety of documents at hearing which led to concessions of various expenses on premise that greater gross revenue shown on such documents must also be accepted. Taxpayer did not claim any amount for capital cost allowance for purchased truck and she would be allowed to do so. Small amount of $750 would be allowed to recognize various miscellaneous expenses but taxpayer did not otherwise establish entitlement to expenses beyond those conceded. Trucking business earned $53,400 in revenue and incurred $27,000 in expenses, leading to taxpayer’s net business income of $26,400 before any claim for capital cost allowance which was $12,165 less than assessed income.
Bobic v. The Queen (2017), 2017 CarswellNat 2670, 2017 CarswellNat 3976, 2017 TCC 107, 2017 CCI 107, Gaston Jorré J. (T.C.C. [Informal Procedure]).
