Appeal No. AP-99-088
19 March 2002
Appeal No. AP-99-088
This is an appeal pursuant to section 81.19 of the Excise Tax Act from an assessment of tax owing in regard to the sale of jewellery manufactured by the appellant. The assessment resulted from an audit and was based on several assumptions of fact and estimates of value of sales of taxable goods. The appellant argued that the assessment was speculative and based on erroneous facts and assumptions. It argued that the value of sales of taxable goods was less than that determined by the auditor and that, as a small manufacturer and in accordance with the Small Manufacturers or Producers Exemption Regulations, it was in fact exempt from the payment of tax.
HELD:
The appeal is dismissed. The case law is clear that the onus is on the taxpayer to successfully challenge the assumptions upon which an assessment is based. In this regard, the appellant has not provided any credible evidence that would discharge this onus. As such, the assessment stands, and the appeal is dismissed.
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