Date: 20030506
Docket: A-213-02
Neutral citation: 2003 FCA 208
CORAM: LINDEN J.A.
BETWEEN:
SATYA PAL
Applicant
- and -
HER MAJESTY THE QUEEN
Respondent
Heard at Toronto, Ontario, Monday, May 5, 2003.
Judgment delivered from the Bench at Toronto, Ontario,
on Monday, May 5, 2003.
REASONS FOR JUDGMENT OF THE COURT BY: LINDEN J.A.
Date: 20030506
Docket: A-213-02
Neutral citation: 2003 FCA 208
CORAM: LINDEN J.A.
BETWEEN:
SATYA PAL
Applicant
- and -
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Toronto, Ontario
on Monday, May 5, 2003)
[1] In this application, the Tax Court Judge held that the applicant failed to prove that he was a small business supplier, that is, that he supplied services valued at less than $30,000 annually as to be exempt from collecting G.S.T.
[2] In doing so, the Tax Court Judge stated that there was no cogent evidence that the $30,000 figure had not been exceeded. He said there was only "vague general statements" about this fact.
[3] Actually, Exhibit A-2, an affidavit of a Mr. Sehmi, who was the lessee of the taxi cab, had been properly introduced into evidence (the same document as A-6 in A-212-02). That affidavit by the lessee stated that the annual rent he paid for the use of the taxi cab was between $14,000 and $15,000. This was cogent evidence, properly introduced, that was not "vague" or "general" but it was completely ignored by the Tax Court Judge.
[4] The estimate by the Departmental Assessor of the annual rental income from the taxi cab, based on the net worth method, ranged from approximately $49,000 to $74,000 annually.
[5] Based on the submissions of counsel for the applicant, we agree that these figures, based on the "blunt instrument" of the net worth calculation were questionable in the circumstances of this case.
[6] We therefore will allow the application for judicial review, set the Tax Court Judge's decision aside and remit the matter to the Tax Court Judge for redetermination. It will be open to the parties to adduce further evidence of the market value of taxi licence rentals and about any other matters that are considered advisable.
[7] Costs to the applicant for both matters will be $7,000 inclusive of disbursements and G.S.T.
"A. M. Linden"
J.A.
FEDERAL COURT OF APPEAL
Names of Counsel and Solicitors of Record
DOCKET: A-213-02
STYLE OF CAUSE: SATYA PAL
Applicant
- and -
HER MAJESTY THE QUEEN
Respondent
PLACE OF HEARING: TORONTO, ONTARIO
DATE OF HEARING: MONDAY, MAY 5th, 2003
REASONS FOR JUDGMENT
OF THE COURT BY: LINDEN J.A
DATED: TUESDAY MAY 6th , 2003
DELIVERED FROM THE BENCH AT TORONTO, ONTARIO ON MAY 5, 2003.
APPEARANCES BY: James McReynolds
For the Applicant
Elizabeth Chasson
Brent Cuddy
For the Respondent
SOLICITORS OF RECORD: Solmon Rothbart Goodman LLP
Barristers and Solicitors
Toronto, Ontario
For the Applicant
Morris Rosenberg
Deputy Attorney General of Canada
For the Respondent