Federal Court of Appeal Decisions

Decision Information

Decision Content

Date: 20011204

Docket: A-343-00

Neutral citation: 2001 FCA 376

CORAM:        STONE J.A.

ROTHSTEIN J.A.

SEXTON J.A.

BETWEEN:

                                                             GARY B. KALLIES

                                                                                                                                            Applicant

                                                                           and

                                                    HER MAJESTY THE QUEEN

                                                                                                                                        Respondent

                                        Heard at Ottawa, Ontario, on December 4, 2001.

                                 Judgment delivered at Ottawa, Ontario, December 4, 2001.

REASONS FOR JUDGMENT OF THE COURT BY:                                                     STONE J.A.


Date: 20011204

Docket: A-343-00

Neutral citation: 2001 FCA 376

CORAM:        STONE J.A.

ROTHSTEIN J.A.

SEXTON J.A.

BETWEEN:

                                                            GARY M. KALLIES

                                                                                                                                            Applicant

                                                                           and

                                                    HER MAJESTY THE QUEEN

                                                                                                                                        Respondent

                                     REASONS FOR JUDGMENT OF THE COURT

                    (Delivered from the Bench, at Ottawa, Ontario, Tuesday, December 4, 2001

STONE J.A.

[1]                We are all of the view that the Tax Court of Canada made no reviewable error in dismissing the applicant's appeals from the Minister's assessments for the 1993 and 1994 taxation years.


[2]                The learned Tax Court Judge concluded that the assumptions of fact pleaded by the respondent had not been refuted. Among those assumptions were that the business of Promotions One of Canada Limited, the applicant's company, "was supplying promotional and advertising products to the customers" and that the amounts in issue represented payments made by the corporation to the applicant, its sole shareholder, for costs incurred by him in "attending race car driving schools in the United States" for "upgrading his skill as a race car driver for personal gratification and were of no benefit to the Corporation".

[3]                The applicant referred in argument to affidavit evidence filed in support of this application as showing that his activities on the race track were directly related to the corporation's business. It must be pointed out, however, that this evidence was not before the Tax Court Judge and therefore cannot now avail the applicant. The application for judicial review does not constitute a trial de novo in this Court. However, we would note in passing that nothing in the record suggests that the applicant's credibility was in issue. Rather, the basis of the Tax Court's decision was that the evidence before the Court did not establish that the expenses in issue were made on account of the corporation but rather that they were made on the personal account of the applicant. Accordingly, we can find no error in the Tax Court Judge's finding that the benefits received by the applicant from the corporation "were not directly related to the business or business advertising" of the corporation.


[4]                The application for judicial review will be dismissed.

                                                                                                                                     "A.J. STONE"                               

                                                                                                                                                      J.A.


                                                  FEDERAL COURT OF APPEAL

                            NAMES OF COUNSEL AND SOLICITORS OF RECORD

DOCKET:                                                                               A-343-00

STYLE OF CAUSE:                                                               Gary Kallies

-and-

Her Majesty The Queen

                                                                             

PLACE OF HEARING:                                                         Ottawa, Ontario

DATE OF HEARING:                                                           December 4, 2001

REASONS FOR JUDGMENT OF THE COURT:             Stone, Rothstein, Sexton JJ.A


RENDERED FROM THE BENCH BY:                              Stone J.A.

APPEARANCES:

Mr. Gary Kallies                                                                        ON HIS OWN BEHALF

Ms. Catherine Letellier de St-Just         FOR THE RESPONDENT

SOLICITORS OF RECORD:

Mr. Gary Kallies                                                                        ON HIS OWN BEHALF

Camlachie, Ontario                             

Mr. Morris Rosenberg                                                              FOR THE RESPONDENT

Deputy Attorney General of Canada

Ottawa, Ontario                                  


 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.