Marco Iampieri

Following the dismissal of the appellant's section 160 appeal, the respondent sought enhanced costs.

The Tax Court of Canada awarded a lump sum of $30,000 in costs to the respondent, noting that the appellant had brought three unsuccessful and meritless motions alleging Charter breaches and a breach of a court order, which significantly and unnecessarily increased the volume and complexity of the work.

The Minister assessed the appellant under section 160 of the Income Tax Act for $138,550, representing an indirect transfer of property from her husband, who had an outstanding tax liability.

The husband transferred funds from his sole proprietorship account to his corporation's account, which then issued payments to a trust to purchase a home in the appellant's name.

The appellant argued she provided consideration through services rendered to the business.

The Tax Court of Canada found that an indirect transfer occurred and that the appellant failed to adduce sufficient evidence to prove she provided consideration.

The appeal was denied.