Given absence of documents Minister assessed using alternative verification method based on employees’ salaries. Minister assessed registrant for GST and penalties. Registrant appealed. Appeal allowed in part. Salary verification method was accepted method. Minister justified in using alternative method given failure of registrant to maintain trustworthy records. Irrelevant that registrant sometimes replaced other employees without remuneration. Adjustments made to assessment because of errors in number of hours worked and days restaurant open. Minister justified in imposing penalty. Registrant and his accountant admitted that not all taxable supplies reported. Registrant knew report false and was grossly negligent in not reporting proper amount.
Langheit c. La Reine (2017), 2017 CarswellNat 7392, 2017 CCI 250, Johanne D’Auray J. (T.C.C. [General Procedure]).