Minister justified in using alternative method given failure of registrant to maintain trustworthy records

Tax court of Canada | Tax | Goods and Services Tax | Administration and enforcement

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]).

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Convocation adds CPD requirement to certified specialist program, will expand program to paralegals

Man loses almost entire inheritance in costs for 'reprehensible,' 'scorched earth' litigation

Ontario Court of Appeal allows Trial Lawyers Association to intervene in medical malpractice case

Ontario Court of Appeal denies extension to perfect appeal in a motor vehicle collision case

Court denies former bencher's request for civil trial data that would show extent of court delays

Ontario Court of Appeal allows wife to collect from husband's debtors through garnishment

Most Read Articles

Man loses almost entire inheritance in costs for 'reprehensible,' 'scorched earth' litigation

Convocation adds CPD requirement to certified specialist program, will expand program to paralegals

Ontario Court of Appeal allows Trial Lawyers Association to intervene in medical malpractice case

Ontario Court of Appeal denies extension to perfect appeal in a motor vehicle collision case