Peter Basta

The appellant brought a motion for default judgment or, in the alternative, to strike portions of the respondent's reply, arguing the reply was filed late.

The respondent argued the reply was timely because the winter recess should be excluded from the court-ordered deadline under Rule 11(b).

The Tax Court held that Rule 11(b) applies only to directions and rules, not court orders, meaning the reply was late.

However, the Court granted the respondent an extension of time to file the reply, finding it in the interests of justice.

The appellant's motion for default judgment and to strike paragraphs of the reply was dismissed, but the appellant was awarded costs due to the respondent's delay.

The corporate appellant appealed the Minister's determination denying its eligibility for the Canada Emergency Wage Subsidy (CEWS) for ten qualifying periods in 2020.

The Minister determined the appellant did not pay eligible remuneration to its two shareholder-employees.

The Tax Court of Canada dismissed the appeal, finding the appellant failed to substantiate the specific wage amounts claimed, as the payments made were irregular and more consistent with shareholder advances than wages.