Onus

Table of Contents

Cases

Vine Estate v. Canada, 2015 DTC 5063 [at 5880], 2015 FCA 125

The taxpayer's return, prepared by his accountants, failed to show $1.07 million of capital gain and $2 million recapture of depreciation...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) filing amended return does not nullify previous lack of reasonable care/quaere whether neglect can be vicarious though outside accountants 552

Swirsky v. Canada, 2014 DTC 5037 [at 6723], 2014 FCA 36, aff'g 2013 TCC 73, 2013 DTC 1078 [at 431]

The trial judge found (at para. 71) that as the Minister had not applied GAAR until the confirmation stage, the Minister was required to show that...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) no objectively reasonable expectation of taxable dividends 459
Tax Topics - General Concepts - Purpose/Intention no objectively reasonable income-producing purpose 85

Palmerino v. MNR, 2013 DTC 5157 [at 6375], 2013 CF 919

CRA began an official investigation of the taxpayer for tax fraud on 7 April 2008. The taxpayer made a request for information regarding the...

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Locations of other summaries Wordcount
Tax Topics - Other Legislation - Federal - Privacy Act - Paragraph 22(1)(a) onus on CRA to prove communications were part of criminal investigation 66

Newmont Canada Corporation v. Canada, 2012 DTC 5138 [at 7292], 2012 FCA 214

The Minister assumed that $7,559,684 of an amount claimed by the taxpayer as a bad debt dedution in respect of a loan held by it comprised...

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House v. Canada, 2011 DTC 5142 [at 6131], 2011 FCA 234

The taxpayer and his wife were the only shareholders of "Hunt River Camps/Air Northland Ltd." (Hunt River), a business from which the taxpayer had...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence credible oral evidence can be uncorroborated by documents 96

Khan v. The Queen, 2009 DTC 804, 2009 TCC 248 (Informal Procedure)

In a motion by the Crown to quash an appeal by the taxpayer on the basis that it had been filed too late, the onus was on the Crown to show that...

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Canada v. Anchor Pointe Energy Ltd., 2007 DTC 5379, 2007 FCA 188

The Minister initially reassessed the taxpayer on the assumption that it had purchased seismic data for more than its fair market value, so that a...

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Words and Phrases
assessment

Transocean Offshore Ltd. v. Canada, 2005 DTC 5201, 2005 FCA 104

Sharlow J.A. stated (at p. 5205):

"There may be situations where fairness would require that no onus be placed on a taxpayer to rebut a specific...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) damages to lessor for advance lease repudiation were in lieu of rent 308

Canada v. Loewen, 2004 DTC 6321, 2004 FCA 146

General review of the jurisprudence on onus and assumptions prior to the enactment of s. 152(9).

The Crown was permitted to defend a reassessment...

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Canada v. Anchor Pointe Energy Ltd., 2003 DTC 5512, 2003 FCA 294

The portion of the Minister's Reply to the Notice of Appeal that stated that in reassessing the Minister had assumed that seismic data acquired by...

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Capital Vision Inc. v. MNR, 2003 DTC 5054 (FCTD)

Before going on to find that the Minister had failed to establish that he had issued requirements under s. 231.2(1) for a disclosure of the names...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 231.2 - Subsection 231.2(1) 158

Roseland Farms Ltd. v. Canada, 2001 DTC 5392, 2001 FCA 167

In rejecting a submission that the shifting of the burden of proof to the taxpayer to disprove the Minister's assumptions can be prevented through...

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Cardella c. Canada, 2001 DTC 5251, 2001 FCA 39

Given that the Minister, in his Reply, pleaded by way of assumption that the taxpayer had no reasonable expectation of profit from his interest in...

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C W Agencies Inc v. The Queen, 2000 DTC 2372 (TCC), aff'd 2002 DTC 6740, 2001 FCA 393

After noting that a Revenue Canada auditor who was reviewing the taxpayer's SR&ED claims, seemed "to have been unwilling to consider any evidence...

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Coffen v. The Queen, 97 DTC 5552 (Ont. Ct. J. (G.D.))

Sheppard J. noted that (at p. 5554) that in an income tax prosecution "the Crown must prove beyond reasonable doubt that each item of income...

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Canderel Ltd. v. Canada, 98 DTC 6100, [1998] 1 S.C.R. 147

In the course of finding that a taxpayer, which amortized tenant inducement payments for financial statement purposes, was entitled to immediately...

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Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336

Because the taxpayer's evidence was not challenged or contradicted by the Minister, the taxpayer had demolished the Minister's assumption and the...

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Bosa Bros. Construction Ltd. v. The Queen, 96 DTC 6193 (FCTD)

The taxpayer acquired all the shares of a corporation ("Topaz"), whose ability to take an inventory write-down for an apartment building depended...

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CPL Holdings Ltd. v. The Queen, 95 DTC 5253 (FCTD)

Cullen J. (at p. 5258) applied the presumption that "the burden of proof ... rests with the tax department in the case of a provision imposing a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) 153

Québec (Communauté urbaine) v. Corp. Notre-Dame de Bon-Secours, 95 DTC 5017, [1994] 3 S.C.R. 3

In the context of an extended discussion of the principles of statutory interpretation relevant to taxing statutes (in this instance, the Act...

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Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Resolving Ambiguity 183

W. Hanley & Co. Ltd. v. The Queen, 90 DTC 6354 (FCTD)

At the time of reassessing the taxpayer, Revenue Canada indicated that it regarded the taxpayer's interest in a property as having been acquired...

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First Fund Genesis Corp. v. The Queen, 90 DTC 6337 (FCTD)

The taxpayer was assessed for Part VIII tax on the basis that its scientific research and experimental development credit did not include an...

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Youngman v. The Queen, 90 DTC 6322 (FCA)

It was not sufficient, in order to displace the onus on the taxpayer arising as a result of the assumption pleaded by the Minister that a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) benefit reduced by interest-free loan made by shareholder 259

The Queen v. Mattabi Mines Ltd., 89 DTC 5357 (FCTD), aff'd 92 DTC 6252 (FCA)

The Minister's Statement of Claim contained an assumption that the taxpayer's reagents were not held for sale, whereas in fact the assessor had...

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Grohne v. The Queen, 89 DTC 5220 (FCTD)

Because the conferral of a s. 15(1) benefit was not among the Minister's assumptions at the time of reassessment, the onus was on the Crown at...

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Smith, Kline & French Laboratories Ltd. v. A.G. (Can.), 89 DTC 5205 (FCTD)

There is a common law presumption in support of public access to the courts and court records, and the burden of persuading the court that access...

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Interprovincial Co-operative Ltd. v. The Queen, 87 DTC 5115, [1987] 1 CTC 222, 87 DTC 5115 (FCTD)

Since the basis of disallowing the taxpayer's CCA claims was made known to the taxpayer both in the pre-pleading period and the pleading period...

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Wise v. The Queen, 86 DTC 6023, [1986] 1 CTC 169 (FCA)

Since the Minister in the Federal Court of Appeal was trying to support his assessments on grounds that were different than those upon which they...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base deposit 61

The Queen v. Bassani, 85 DTC 5232, [1985] 1 CTC 314 (FCTD)

The Crown must plead secondary intention expressly in order to shift the burden of proof with respect to secondary intention to the taxpayer.

Tony Mele Incorporated v. The Queen, 85 DTC 5196, [1985] 1 CTC 252 (FCTD)

The onus on the taxpayer to dislodge the assumptions of the Minister is not satisfied by establishing that the Revenue Canada auditor was unable...

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Krassman v. The Queen (1979), 102 D.L.R. (3d) 262 (FCTD)

It is rare for there to be contradictory evidence in a tax case and accordingly, although the Court should not disbelieve witnesses without valid...

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Farmer Construction Ltd. v. The Queen, 83 DTC 5215, [1983] CTC 198 (FCTD)

In a case where the only issue was whether an asset disposed of was a capital asset or a trading asset, then the onus of proof rested on the...

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Hillsdale Shopping Centre Ltd. v. The Queen, 81 DTC 5261, [1981] CTC 322 (FCA)

"If a taxpayer, after considering a reassessment made by the Minister, the Minister's reply to the taxpayer's objections, and the Minister's...

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Kit-Win Holdings (1973) Ltd. v. The Queen, 81 DTC 5030, [1981] CTC 43 (FCTD)

"If the Minister has failed to allege as a fact an essential ingredient to the validity of the assessment under the applicable statutory provision...

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The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205, 80 DTC 6157 (FCA)

Although the Court agreed that a portion of the payment in question fell within the language of s. 212(1)(d)(i), the Minister had taken an...

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Simpson v. The Queen, 79 DTC 5336 (FCTD)

In an interpleader action, the onus was on the Crown to show that the owner of an aircraft, which had been seized on behalf of the Department, was...

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Quality Chekd Dairy Products Association v. MNR, 67 DTC 5303 (Ex Ct)

Because the Minister had failed in its pleading to adduce evidence as to the proper apportionment in the amount of a fee received by the taxpayer...

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See Also

Gerbro Holdings Company v. Canada, 2016 TCC 173

After stating (at para. 67) that "assumptions of law or mixed fact and law are not binding on this Court," Lamarre ACJ stated (at para. 73):

The...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) offshore hedge fund investments were chosen in the main for commercial reasons (e.g., manager reputation), so that s. 94.1 did not apply 362
Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. MInister's statement was false 130
Tax Topics - Other Legislation - Federal - Tax Court Rules - Section 145 - Subsection 145(3) expert's report did not include all the underlying data 115

Szymczyk v. The Queen, 2014 TCC 380 (Informal Procedure)

The taxpayer's employer, General Motors, frequently assigned new vehicles to its executives and senior managers, the taxpayer included, in order...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Estoppel Minister's authorization should not be set aside too readily as being contrary to law 329
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) late designation not permitted/rule-of-thumb method invalidated by s. 6(1)(k) 201
Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) separate personal use kilometers required for each vehicle used in year 183

0742443 B.C. Ltd. v. The Queen, 2014 DTC 1208 [at 3811], 2014 TCC 301, aff'd 2015 DTC 5115 [at 6304], 2015 FCA 231

Respecting an alleged faulty Reply of the Minister, C Miller J stated obiter (at para. 32):

If a reply is faulty by pleading law as an assumption,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business storage charges were property income, cf. hotel revenue 255

Bekesinski v. The Queen, 2014 DTC 3604 [at 1169], 2014 TCC 245

The appellant contended that he had resigned as director in 2006, so that an assessment under s. 227.1(1) in 2010 was out of time. The Minister...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(4) appellant, who likely backdated resignation, was plausible enough to demolish assumptions 98

Health Quest Inc v. The Queen, 2014 TCC 211 (Informal Procedure)

The appellant ("Health Quest") distributed footwear for the relief of various disabling conditions of the foot.. The Minister reassessed the...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part II - 24.1 insufficient product design evidence 193

Galachiuk v. The Queen, 2014 DTC 1153 [at 3494], 2014 TCC 188

The taxpayer failed to report $683 of income for 2008 and $436,890 for 2009. The 2009 income was not subject to a s. 163(1) penalty if the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) due diligence is available for the first relevant year, not only the second 248

Drouin v. The Queen, 2014 DTC 1016 [at 2564], 2013 TCC 139

In the course of successfully demonstrating that a franchise agreement and related arrangements with a Barbados corporation reflected a genuine...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 3 - Business Source/Reasonable Expectation of Profit arrangement looking like Barbados tax shelter was in fact genuine business 124

Dr. Mike Orth Inc. v. The Queen, 2013 DTC 1110 [at 588], 2013 TCC 123 (Informal Procedure)

The taxpayer simultaneously sought to rebut the Minister's assumptions relating to its appeal and to claim privilege over documents closely...

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Poulin v. The Queen, 2013 DTC 1102 [at 545], 2013 TCC 104

Hershfield J found that the Minister's affidavit was inadequate to establish under s. 244(10) that the taxpayer's Notice of Objection had been...

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Mignardi v. The Queen, [2013] GSTC 39, 2013 TCC 67 (Informal Procedure)

The Minister assessed the appellant for director's liability in respect of a corporation that had not remitted net tax for reporting periods...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 323 - Subsection 323(1) onus on Minister where taxpayer had no financial involvement 116
Tax Topics - Excise Tax Act - Section 323 - Subsection 323(3) failure to monitor other director 73
Tax Topics - Excise Tax Act - Section 323 - Subsection 323(5) no constructive resignation 65
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) onus on Minister where taxpayer had no financial involvement 116

Pawlak v. The Queen, 2012 TCC 355 (Informal Procedure)

Webb J found that the obligation of the Minister to take unclaimed input tax credits into account in an HST audit under s. 296(2) of the Excise...

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Basi v. The Queen, 2012 DTC 1282 [at 3836], 2012 TCC 345

Webb J. found that the taxpayer was successful in demolishing the Minister's assumptions relating to the proceeds of disposition of two...

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Brewster v. The Queen, 2012 DTC 1178 [at 3451], 2012 TCC 187 (Informal Procedure)

Webb J. found that it was improper for the Minister to assume that investments which the taxpayer acquired with RRSP funds were not qualified...

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SoftSim Technologies Inc. v. The Queen, 2012 DTC 1187 [at 3473], 2012 TCC 181

The taxpayers' former counsel had reached a settlement agreement with the Minister, which the taxpayers argued had not been authorized by them. ...

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Marshall v. The Queen, 2012 DTC 1068 [at 2815], 2012 TCC 21

The taxpayer was the sole shareholder and director of Internorth Limited ("IL") and a majority shareholder and director of Internorth Construction...

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Szollosi Bens v. The Queen, 2011 TCC 240, 2011 TCC 109

Webb J. quashed the Minister's motion to dismiss the taxpayer's appeal from assessments under the Income Tax Act and Excise Tax Act, even though...

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Rail v. The Queen, 2011 DTC 1190 [at 1057], 2011 TCC 130

The Minister disallowed a number of the taxpayer's expenses allegedly connected to his dentistry practice so as to reduce the taxpayer's profit...

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Richard A. Kanan Corporation v. The Queen, 2011 DTC 1168 [at 928], 2011 TCC 211 (Informal Procedure)

The Minister disallowed the taxpayer's deduction of certain legal expenses. The only documentary evidence provided by the taxpayer as to the...

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Blais v. The Queen, 2011 DTC 1008 [at 55], 2010 TCC 195 (Informal Procedure)

The taxpayers refused to produce their documents before the Minister filed its Notices of Assessment, but did produce them after filing their...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 96 51

Husky Oil Limited v. Canada, 2010 DTC 5089 [at 6887], 2010 FCA 125

Sharlow, J. A. noted (at para. 52) that as the Minister had assessed the taxpayer under s. 87(4) on the basis that shares received by it on an...

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4528957 Manitoba Ltd. c. M.R.N., 2009 DTC 1218, 2009 TCC 298

The Minister assessed the taxpayer under s. 153(1) of the Income Tax Act and the taxpayer filed a Notice of Objection under the Canada Pension...

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Douthwright v. The Queen, 2007 DTC 1614, 2007 TCC 560 (Informal Procedure)

Given that the Crown had not made any assumptions of fact as to what portion of the reimbursement amounts made by the taxpayer were on account of...

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Parker Brothers Textile Mills Limited v. The Queen, 2007 DTC 610, 2007 TCC 74

In finding that all of the fee paid by the taxpayer should be treated as deductible under paragraph 20(1)(dd), Hershfield J. stated (at para....

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Cloverdale Paint Inc. v. The Queen, 2007 DTC 243, 2006 TCC 628

The wholly-owned U.S. subsidiary of the taxpayer accumulated a large balance owing to the taxpayer as a result of its purchase of paint inventory...

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Hawa v. The Queen, 2007 DTC 28, 2006 TCC 612 (Informal Procedure)

The Reply of the Crown to the taxpayer's Notice of Appeal with respect to an assessment that treated losses the taxpayer sustained in securities...

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Anchor Pointe Energy Ltd v. The Queen, 2006 DTC 3365, 2006 TCC 424

The Minister originally had reassessed the taxpayer on the basis that it was entitled to claim a deduction in respect of the fair market value of...

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Crystal Beach Park Limited v. The Queen, 2006 DTC 2845, 2006 TCC 183

The evidence of the field auditor indicated that an assumption pleaded by the Minister had not in fact been in his mind at the time of assessing....

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Arnold v. The Queen, 2005 DTC 1699, 2005 TCC 725 (Informal Procedure)

After finding that the taxpayer was not subject to the self-supply rule in s. 191(1) of the Excise Tax Act (because the taxpayer was not a...

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Orly Automobiles Inc. v. Canada, 2005 FCA 425

In the course of an appeal regarding input tax credits, the taxpayer argued that, having failed to disclose assumptions at or prior to the time of...

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Borys v. The Queen, 2005 DTC 1069, 2005 TCC 397

After noting an ambiguous statement of assumptions in the Minister's pleadings, Bowman C.J. stated (at p. 1071):

"Where assumptions (or for that...

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Morley v. The Queen, 2004 DTC 2604, 2004 TCC 280, briefly aff'd 2006 DTC 6351, 2006 FCA 171

After agreeing with counsel for the taxpayer that a taxpayer has met the onus to demolish the assumptions of fact made by the Minister if the...

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Holm v. The Queen, 2003 DTC 755 (TCC)

Bowman A.C.J. stated (at p. 759):

"If the court sees many more instances of pleading incomplete, inaccurate or misleading assumptions we may have...

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Molson Brewery BC Ltd. v. Canada, [2002] FCJ No. 87 (FCTD)

The taxpayer carried on a brewery business as agent for its parent. Before going on to find that a transaction in which the taxpayer and another...

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Shaughnessy v. The Queen, 2002 DTC 1272 (TCC)

After noting that the Minister had pleaded "boiler plate" assumptions, Bowman A.C.J. stated (at p. 1275):

"The entire system developed in our...

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Weisz Rocchi & Scholes v. The Queen, [2001] 2 CTC 2520, 2001 DTC 3705 (TCC)

Bowman T.C.J. indicated that the onus put on a taxpayer to challenge an assessment of the Crown did not apply where the Minister imposed a...

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Hallatt v. The Queen, 2001 DTC 128 (TCC)

After referring to Johnston v. MNR, [1948] S.C.R. 486, Bowman A.C.J. stated (at p. 133):

"Rand, J. spoke of 'demolishing' the basic fact upon...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Other 16

Bell v. The Queen, 97 DTC 484 (TCC)

Given that the matter in controversy (whether a program had been financed with a federal appropriation) was a matter that could be much more...

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Bowens v. The Queen, 94 DTC 1853 (TCC), aff'd 96 DTC 6128 (FCA)

Revenue Canada originally assessed the taxpayer on the assumption that the taxpayer was not dealing at arm's length with another entity...

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Graham v. The Queen, 92 DTC 1012 (TCC)

Before going on to find that the Crown had failed to provide admissible evidence that the taxpayer's appeal to the Tax Court was out of time,...

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Brad-Lea Meadows Ltd. v. MNR, 90 DTC 1269 (TCC)

The onus was on the Minister to adduce evidence of the proper apportionment to be made, respecting an "affiliation fee" paid by the taxpayer to a...

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Gross v. MNR, 89 DTC 660 (TCC)

In his Reply to the Appeal of the taxpayer from a reassessment which had disallowed a deduction of $70,000 for a donation which the taxpayer had...

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Anderson Logging Co. v. The Queen, 52 DTC 1209 (SCC), aff'd 52 DTC 1215 (PC)

At 1211:

"... the appellant is in the same position as any other appellant. He must shew that the impeached assessment is an assessment which...

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Articles

Vern Krishna, "Onus of Proof in Tax Litigation", 18 Canadian Current Tax, No. 6, March 2008.

Festeryga, "The Onus Issue", CA Magazine, July 1992, p. 34.