There was third party evidence of taxes, interests, costs and insurance expenses

Tax - Income tax - Business and property income

Taxpayer owned bed and breakfast (B&B) business and had failed to file income tax returns for taxation years 2009 to 2015. Taxpayer no longer owned B&B business, nor property from which business was operated, as it was subject to mortgagee’s final order of foreclosure. Minister assessed taxpayer as non-filer and ascribed gross income of $30,000 for each assessed year. Taxpayer appealed. Appeal allowed. There was third party evidence of taxes, interests, costs and insurance expenses incurred by taxpayer for each assessed year based on mortgagee’s summary judgment motion of 2016. It was concluded that 50 per cent deduction of these expenses were business related and should be allowed, and taxpayer’s net business income was alternatively assessed and net business income reduced. Accordingly, appeal was allowed regarding net business income calculations of B&B business and any concordant adjustments to CPP premiums and other amounts of interest relating to tax owing.

Wilson v. The Queen (2019), 2019 CarswellNat 504, 2019 CarswellNat 550, 2019 TCC 42, 2019 CCI 42, Randall S. Bocock J. (T.C.C. [Informal Procedure]).

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