Précis: The taxpayer operated a cleaning business as a sole practitioner from 2009 to 2011. CRA denied most of the expenses claimed from the business in 2010 and 2011 and Mr. Kandasamy appealed to the Tax Court. The Court found that Mr. Kandasamy had failed to meet the onus on him to rebut the assumptions pleaded by the Crown. However in the case of expenses which CRA had treated as capital items and allowed capital cost allowance the Court found that the issue was not clearly pleaded by the Crown. As a result Mr. Kandasamy was entitled to deductions of $5,000 in 2010 and $2,400 in 2011 which CRA had treated as capital items. There was no order as to costs.
Kandasamy v. R. - TCC: Taxpayer allowed part of expenses claimed - Crown’s pleading deficientREAD MORE »