Tax Court of Canada


Goods and Services Tax

Zero-rated supplies

Registrant did not keep adequate books and records in accordance with Excise Tax Act

Registrant carried on business of selling used vehicles, which consisted of purchase at auction of damaged or high mileage vehicles that could not be used in Canada and resale of them. Auditor could substantiate only 5.91 percent of sales made by registrant as export sales during month of September 2011 and applied this percentage to full period under audit. Minister of National Revenue reassessed registrant for 2011 and 2012 reporting periods. For 2011 and 2012 periods, adjustments were made to increase amount of GST/HST collectible under Excise Tax Act and allow additional input tax credits resulting in net tax liabilities of $29,415.13 and $29,187.17. Registrant conceded that 13 percent of sales in 2011 and 2012 periods were export sales. Registrant appealed. Appeals allowed in part to extent of permitting concessions made by registrant. Registrant did not provide sufficient and reliable evidence showing, even on prima facie basis, that more than 13 percent of his sales during 2011 and 2012 periods were expert sales under Act. Registrant did not provide evidence that would require intervention. Registrant did not keep adequate books and records in accordance with Act.

Nwaukoni v. The Queen (2018), 2018 CarswellNat 8326, 2018 TCC 252, Dominique Lafleur J. (T.C.C. [General Procedure]).

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