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INCOME TAX

Exemptions

Suchon v. Canada

A-653-01

2002 FCA 282, Sharlow J.A.

3/7/02

17 pp.

Appeal from Tax Court of Canada decision payments received by applicant under employer's long-term disability program as result of work-related injury subject to income tax--Appeal dismissed--In Whitney v. Canada, [2002] 3 C.T.C. 476 (F.C.A.), Court held that such amounts paid to injured employee not within scope of Income Tax Act, ss. 56(1)(v), 110(1)(f)(ii) unless paid in accordance with workers' compensation law; payments made under contractual arrangements outside scope of those provisions--Therefore, payments in issue taxable under Act, s. 6(1)(a), assessments under appeal correct--At conclusion of trial in Tax Court, applicant's application to adduce evidence in reply denied without explanation--Tax Court Judge did not err in exercising discretion to refuse request as application made long after evidence phase, alleged factual error appeared not to be critical--As to subpoena of Crown official, applicant cannot complain of Crown official's failure to bring document to Tax Court hearing as subpoena not served correctly--Although Tax Court Judge erred as to admissibility of evidence (hearsay evidence admissible if necessary, reliable; weight to be determined by judge; no absolute prohibition on admission of documents if author not witness; evidence in informal proceeding cannot be excluded simply because would be inadmissible in ordinary court proceeding; erred in determining documents irrelevant), would be futile to order new hearing--Income Tax Act, R.S.C., 1985 (5th Supp.), ss. 6(1)(a), 56(1)(v) (as am. by S.C. 1994, c. 7, Sch. III, s. 13), 110(1)(f)(ii) (as am. idem, c. 21, s. 49).

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