http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/235317/index.do
Langboung v. The Queen (September 22, 2017 – 2017 TCC 186, Russell J.).
Précis: The taxpayer claimed to have made cash charitable donations in each of 2002 to 2005 which represented a substantial portion of his income in those years. He had no charitable receipts or any other form of documentation. The Court permitted the opening of the 2002-2004 taxation years (which would otherwise have been statute-barred) and dismissed the appeals for all 4 taxation years. There was no order as to costs since this was an informal procedure appeal.
Decision: The disputed cash donations were large in relation to the taxpayer’s income in the years in questions:
[4] The Appellant testified he had retained an accountant who prepared his returns. He trusted the accountant and so did not review his returns. He was not aware that she subsequently was convicted for fraud. He stated he had had a photocopy of all submitted documentation but that is lost too. He had moved to Edmonton from Ontario in 2008. He agreed that his 2002 net income was $26,102 and that he had claimed $5,050 charitable donation tax credit for that year. He acknowledged for 2003 having total earnings of $40,966 and claiming $8,500 charitable donation tax credit. He likewise acknowledged 2004 net income of $43,920 and claiming a $5,044 charitable donation tax credit and in 2005 having net income of $27,730 when he claimed charitable donation tax credit of $3,095.
In light of a complete absence of supporting documentation the Court dismissed the appeal:
[10] In my view, in this appeal the Respondent’s reassessments should be supported. There is a complete absence of evidence supporting the Appellant’s uncorroborated oral testimony given under oath. To claim a charitable gift tax credit the law clearly requires supportive documentation in the form of receipts with prescribed information. Not only did the Appellant not have even one receipt, he had no other documentation whatsoever; not even something from the putative church in Ontario that was his supposed recipient of the alleged charitable gifts.
[11] Additionally, in my view the Respondent has successfully established the opening of the two statute-barred years - 2002 and 2003 - for which reassessments also have been appealed in this proceeding. A misrepresentation due to carelessness, negligence or wilful default for each such year has been established by, again, the complete and utter absence of any shred of documentation as required by law - or even third party testimony - that would even begin to substantiate the Appellant’s statements in his tax returns claiming he had made in claiming charitable donation tax credits for each of those years.
[12] The appeal accordingly is dismissed, as to each of the appealed reassessments for the Appellant’s 2002, 2003, 2004 and 2005 taxation years, respectively.
There was no order as to costs since this was an informal procedure appeal.