Municipal Rep Beats Canada Revenue Agency in Tax Court :CRA SOTW
Alan Baggett
Municipal representative beats taxman on appeal
By TOM AYERS
The Cape Breton Post
SYDNEY — They say you can’t fight city hall, and going up against the
taxman is considered by some to be an even tougher battle.
Victoria County deputy warden Fraser Patterson — representing himself,
not city hall — went toe-to-toe with the Canada Revenue Agency
recently, and won, after the tax agency reassessed his personal income
tax and included municipal mileage expenses as a taxable benefit.
It wasn’t really city hall vs. the taxman, but municipal
representatives might want to take note, and Patterson is pleased with
his victory over the Canada Revenue Agency this past summer.
Patterson appealed the tax payable on $3,094.72, the amount he had
claimed in mileage expenses over three years.
“It’s only a pittance; it’s not very much, but I decided to fight it,”
said Patterson.
Patterson said the CRA recently reassessed his personal income tax for
the years 2004, 2005 and 2006, including his municipal expense claims
as income. He appealed to the Tax Court of Canada in Sydney in June,
and was notified he had won his appeal in mid-November.
“It just pissed me off,” he said. “I don’t mind paying tax, but this
seemed beyond.”
Patterson said the CRA tried to tax him on mileage he was paid for
travelling 50 kilometres from his home in Ross Ferry to the municipal
office in Baddeck. Other councillors who travel more than 80
kilometres were not reassessed, he added.
Peter McCreath, chairman of the Nova Scotia Liquor Corp. board of
directors, lost an appeal in October after the tax court judge decided
he was claiming a personal expense for travelling to and from the NSLC
headquarters, where an office was provided for him.
Patterson said the municipality does not provide him with an office;
its administrative centre is simply located in Baddeck.
Patterson also said he spoke to some officials from the Union of Nova
Scotia Municipalities, but no one seemed to have a handle on how many
municipal representatives might be affected, because the issue arose
on individuals’ tax returns.
“UNSM, as an organization, we try to stay focused on the issues that
involve lobbying the provincial government,” said executive director
Ken Simpson. “I haven’t heard from anyone else on this file.”
The municipal umbrella group might issue a general alert to its
members about Patterson’s win, he said, but no other action is
planned.
However, Simpson added, “It’s always nice to hear of someone coming up
against Revenue Canada and winning.”
Victoria Co. warden Bruce Morrison said at least one other Victoria
councillor also received a reassessment from the CRA based on mileage
claims under 80 kilometres, but the cases seemed to be individual
issues that didn’t require backing from council.
“Why this happened, I don’t know,” he said, “but good for Fraser. He
fought the good fight and won.”
tay...@cbpost.com
02/12/08
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Sharx35
travelling to their work place--is this position a part-time one where the
person has to travel into a particular office occasionally? More details,
please.
"Alan Baggett" <AlanB...@volcanomail.com> wrote in message
news:033f8962-2d78-4225...@m36g2000vbp.googlegroups.com...
Alan Baggett
> I'm trying to wrap my mind around this one. No employees get paid for
> travelling to their work place--is this position a part-time one where the
> person has to travel into a particular office occasionally? More details,
> please.
>
>
> - Show quoted text -
All the info is there.
The question is - how could the CRA assess just him but not other
councillors if all were carrying on in the same manner?
Sharx35
"Alan Baggett" <canada.rev...@canada.com> wrote in message
news:357ee72b-2256-4c36...@f11g2000vbf.googlegroups.com...
No surprise to me, Alan! The CRA is no stranger...then again, neither is
any body of govt/justice, any stranger to arbitrary enforcement of
regulation/law. I'm sure that lots of people would like to be paid tax-free
funds for travelling to/from their place of work.
I do not always celebrate when CRA loses a case--it means others, including
myself, will eventually be subject to higher taxation.