Payments were not one-time windfalls, but received as result of services taxpayer provided in carrying out duties as employee of casino

Tax court of Canada | Tax | Income tax | Source of income

Taxpayer worked as slot attendant at casino and reported income for two taxation years, which did not include tips. Taxpayer’s duties included interacting with casino patrons, servicing machines, contacting appropriate cash individuals when patron won, and showing people how to use machine. Taxpayer received income of $27,011 for 2011, and $29,327 for 2012. Minister reassessed taxpayer and added unreported income of $23,937 and $39,219 for each of taxation years, respectively, and imposed gross negligence penalties for both taxation years. Taxpayer appealed. Appeal dismissed. Section 5(1) of Income Tax Act provided that taxpayer income included “other remuneration, including gratuities”. It was clear that payments were not one-time windfalls, but were received as result of services taxpayer provided in carrying out his duties as employee of casino.

Xia v. The Queen (2018), 2018 CarswellNat 8942, 2018 CarswellNat 9106, 2019 TCC 30, 2019 CCI 30, Diane Campbell J. (T.C.C. [Informal Procedure]).

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