Ryan Rabinovitch

The appellants, an individual and his wholly-owned telecommunications corporation, appealed income tax reassessments for the 2015 and 2016 taxation years.

The Minister had disallowed various rental and business expenses, including interest, maintenance, home office, and vehicle expenses, and had assessed shareholder benefits.

The Tax Court of Canada allowed the appeals in part, finding that the individual was entitled to deduct certain interest and home office expenses, and that the vehicle was used 80% for business purposes.

The Court also reduced the shareholder benefits and allowed the corporation to deduct management fees and a portion of the vehicle expenses.

The Respondent moved to dismiss the appeal after the self-represented Appellant, residing in China, failed to attend an oral examination for discovery in Canada.

The Appellant brought a cross-motion to allow his appeal without discovery, arguing the Respondent's insistence on in-person discovery and delay in answering written questions constituted an abuse of process.

The Tax Court of Canada dismissed the Appellant's motion and partially granted the Respondent's motion.

The Court declined to dismiss the appeal, finding the Appellant's failure to attend was an honest mistake rather than egregious conduct.

However, the Court ordered the Appellant to attend discovery in Canada, granted the Respondent an extension of time, and awarded costs thrown away to the Respondent.