Précis: Mr. Lucyk ran a successful carpet-laying business through a wholly-owned corporation, 101103269 Saskatchewan Ltd. (“101SK”). CRA assessed Mr. Lucyk with respect to various expenses that were paid by 101SK which CRA treated as personal benefits to Mr. Lucyk and his wife. These included car expenses, meals, telephone and other items. Mr. Lucyk appealed to the Tax Court. At trial in the Tax Court the issues were narrowed down to car expenses, meals and telephone. Neither Mr. Lucyk nor his wife testified. The Court largely rejected the claims in the absence of any evidence to rebut the position of CRA. The Court did however allow a de minimus amount, 10%, for corporate use of the home phone.
Lucyk v. R. - TCC: Court rejects most expense claims in the absence of evidencePlus >