Taxpayer’s undertaking was entirely commercial

Tax - Income Tax - Business and Property Income

Taxpayer electrician began providing electrical services directly to customers in 1994. In 2001, taxpayer incorporated G Inc. which provided electrical services, maintenance and repairs. At some point in 2005-2006, taxpayer stopped operating through G Inc. and issued in his own name reflective documents of services provided to his customers. Taxpayer did not file income tax or GST return in 2006. Taxpayer was charged with tax evasion for taxation years 2003 to 2005 inclusive and after lengthy trial was convicted of one count of willfully evading payment of taxes and three counts of making false and deceptive statements on his income tax returns. Minister of National Revenue reassessed taxpayer and taxpayer was arbitrarily assessed for 2006. Taxpayer appealed income tax and shareholder reassessments concerning taxation years 2003, 2004, 2005 and 2006 under Income Tax Act. Appeal dismissed. Determination of unreported income or benefits made in criminal proceedings upon conviction for income tax evasion relating to identical years and taxpayers was determinative finding. Taxpayer’s unreported shareholder benefits for taxation years 2003, 2004 and 2005 were $33,845.26, $45,751.47 and $30,240.80 respectively. Taxpayer’s undertaking was entirely commercial. Receipts were business income in 2006 and his unreported business income for that year was $45,397.00.

Tyskerud v. The Queen (2019), 2019 CarswellNat 1340, 2019 CarswellNat 1696, 2019 TCC 84, 2019 CCI 84, Randall S. Bocock J. (T.C.C. [Informal Procedure]).

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