97-3575(IT)I
BETWEEN:
DALE G. STEPHENS,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
Appeals heard on November 26, 1998 at Saskatoon, Saskatchewan, by
the Honourable Judge D.W. Beaubier
Appearances
For the Appellant: The Appellant himself
Counsel for the Respondent: Gordon Berscheid
JUDGMENT
The appeals from the reassessments made under the Income Tax Act for the 1993 and 1994 taxation years are allowed and the matter is referred back to the Minister of National Revenue for reconsideration and reassessment in accordance with the attached Reasons for Judgment.
Signed at Ottawa, Canada this 16th day of December 1998.
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"D.W. Beaubier" |
J.T.C.C.
Date: 19981216
Docket: 97-3575(IT)I
BETWEEN:
DALE G. STEPHENS,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
(Delivered orally from the Bench
at Saskatoon, Saskatchewan
on November 27, 1998)
Beaubier, J.T.C.C.
[1] This Appeal pursuant to the Informal Procedure was heard at Saskatoon, Saskatchewan on November 26, 1998. The Appellant was the only witness. He has appealed the disallowance of some deductions relating to his pottery business in Hazlet, Saskatchewan in 1993 and 1994. They are detailed in Schedules 1 and 2 of the Reply of Notice of Appeal.
[2] By item the Court finds:
1993 1994
PST IN SALES $16.25
The Appellant testified that he had receipts for these in Court and that they related to business sales. This claim is allowed.
[3] 1994
Advertising $10.00
This item and a second "Donation" of $45.00 raised at the Appeal were described in receipts filed as "donations." The $10 to the Saskatchewan Abilities Council was to a charity. The $45 to the Canadian Taxpayers Federation was shown as a "contribution" and was not identified as for business purposes per se. For these reasons both claims are denied.
[4] 1993 1994
Interest Bank $3,487.34 $3,113.42
These claims relate to interest on a loan of $39,000, which was allocated from a larger loan to the Appellant by his Credit Union. The allocation occurred when the Credit Union investigated a loan of $76,000, to divide it between personal and business purposes. It loaned 75 percent of assets provided as securities, amounting to $55,000 in gross. The Appellant gave an example of $100 worth of clay, which has been manufactured into $5,000 of green pottery moulds as providing $5,000 security.
However, only $4,000 plus $3,572 were identified by him as constituting original loans obtained for a business purpose. For this reason, the Appellant is allowed the deduction of interest on $7,572 principal for each year. There is no clear evidence of any additional principal in the loan which related to business expenditures by the Appellant.
[5] 1993
Meals $29.82
This was described and constituted meals for the Appellant, his wife and son. It is a personal expense.
[6] A motor vehicle expense claimed for 1993 was waived by the Appellant.
[7] 1993 1994
Light, Heat and Water $962.87 $533.69
The Appellant testified that these related to a house he owned in Hazlet that was used to store pottery, which had hot and cold water and was used as a business premises. He testified that it was not used personally or for any other purpose. This deduction is allowed for both years.
[8] These Appeals are referred to the Minister of National Revenue for reconsideration or reassessment on the foregoing basis.
Signed at Ottawa, Canada this 16th day of December 1998.
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J.T.C.C.
COURT FILE NO.: 97-3575(IT)I
STYLE OF CAUSE: Dale G. Stephens and The Queen
PLACE OF HEARING: Saskatoon, Saskatchewan
DATE OF HEARING: November 26, 1998
REASONS FOR JUDGMENT BY: The Honourable Judge D.W. Beaubier
DATE OF JUDGMENT: December 16, 1998
APPEARANCES:
For the Appellant: The Appellant himself
Counsel for the Respondent: Gordon Berscheid
COUNSEL OF RECORD:
For the Appellant:
Name:
Firm:
For the Respondent: Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada