Coffen v. Minister of National Revenue, (1997) 26 O.T.C. 321 (GD)

• Judge: Sheppard, J.
• Court: Ontario Court of Justice General Division (Canada)
• Case Date: February 21, 1997
• Jurisdiction: Ontario
• Citations: (1997), 26 O.T.C. 321 (GD)

Coffen v. MNR (1997), 26 O.T.C. 321 (GD)

MLB headnote and full text

Kenneth Coffen (appellant) v. Her Majesty The Queen (respondent)

(File No. 279/93)

Indexed As: Coffen v. Minister of National Revenue

Ontario Court of Justice

General Division

Sheppard, J.

February 21, 1997.

Summary:

A taxpayer was charged with one count of wilfully evading the payment of federal taxes in the amount of $86,814.16 by failing to report income of $312,535.86 respecting the taxation years 1985, 1986, 1987 (Income Tax Act, s. 239(1)(d)) and three counts of unlawfully making false or deceptive statements in his 1985, 1986 and 1987 tax returns by understating his income in the respective years by $40,701.61, $203,152.60 and $68,681.66 (s. 239(1)(a)).

The Ontario Court of Justice (Provincial Division) convicted the taxpayer on all charges and imposed a fine of $146,000. The taxpayer appealed.

The Ontario Court (General Division) allowed the appeal, set aside the conviction and sentence and ordered a new trial.

Criminal Law - Topic 4516

Procedure - Trial - Special duties of Crown - Splitting Crown's case - See paragraphs 19 to 23.

Criminal Law - Topic 5235

Evidence and witnesses - Rebuttal evidence - By Crown - See paragraphs 19 to 23.

Evidence - Topic 511

Presentation of evidence - Rebuttal evidence - Criminal cases - See paragraphs 19 to 23.

Income Tax - Topic 9344

Enforcement - Offences - Appeals - See paragraphs 5, 6.

Income Tax - Topic 9350

Enforcement - Offences - False statements - See paragraphs 1 to 48.

Income Tax - Topic 9363

Enforcement - Evidence and proof - Burden of proof - See paragraphs 7 to 15.

Income Tax - Topic 9404

Enforcement - Procedure - Form of charge - See paragraph 46.

Income Tax - Topic 9509

Tax evasion and tax avoidance - General principles - Income - Proof of - See paragraphs 1 to 45.

Income Tax - Topic 9510

Tax evasion and tax avoidance - General principles - What constitutes evasion - See paragraphs 1 to 48.

Income Tax - Topic 9663

Tax evasion and tax avoidance - Evidence and proof - Burden of proof - See paragraphs 7 to 15.

Cases Noticed:

R. v. Morin, [1988] 2 S.C.R. 345; 88 N.R. 161; 30 O.A.C. 81; 44 C.C.C.(3d) 193; 66 C.R.(3d) 1, refd to. [para. 4].

Warnford Court (Canada) Ltd. v. Minister of National Revenue, 64 D.T.C. 5103 (Ex. Ct.), refd to. [para. 5].

Richthofen v. Minister of National Revenue, 68 D.T.C. 5346 (Ex. Ct.), refd to. [para. 5].

Johnston v. Minister of National Revenue, [1948] S.C.R. 486; 3 D.T.C. 1182, refd to. [para. 7].

Ciglen v. R., 69 D.T.C. 5045 (Ont. C.A.), affd. [1970] S.C.R. 804; 70 D.T.C. 6118, refd to. [para. 7].

R. v. D.W., [1991] 1 S.C.R. 742; 122 N.R. 277; 46 O.A.C. 352; 63 C.C.C.(3d) 397; 3 C.R.(4th) 302, refd to. [para. 12].

R. v. Redpath Industries Ltd. and Dominion Sugar Co., 84 D.T.C. 6349 (Que. S.C.), refd to. [para. 13].

Harris v. Minister of National Revenue, 64 D.T.C. 5332 (Ex. Ct.), refd to. [para. 22].

R. v. Scheller, [1976] 1 F.C. 480; 75 D.T.C. 5406 (T.D.), refd to. [para. 22].

Minister of National Revenue v. McLeod (1990), 33 F.T.R. 306; 90 D.T.C. 6281 (T.D.), refd to. [para. 22].

R. v. Biddle (E.R.), [1995] 1 S.C.R. 761; 178 N.R. 208; 79 O.A.C. 128; 96 C.C.C.(3d) 321; 36 C.R.(4th) 321, refd to. [para. 22].

R. v. Krause, [1986] 2 S.C.R. 466; 71 N.R. 61; 29 C.C.C.(3d) 385; 33 D.L.R.(4th) 267, refd to. [para. 22].

R. v. Harper, [1982] 1 S.C.R. 2; 40 N.R. 255; 133 D.L.R.(3d) 546; 65 C.C.C.(2d) 193, refd to. [para. 36].

Robertson (Kenneth B.) Ltd. v. Minister of National Revenue (1944), 2 D.T.C. 655, refd to. [para. 42].

Canadian Fruit Distributors Ltd. v. Minister of National Revenue, 54 D.T.C. 1145 (Ex. Ct.), refd to. [para. 42].

R. v. Sihler (1976), 13 O.R.(2d) 285 (C.A.), refd to. [para. 43].

R. v. Fogazzi (N.F.), 92 D.T.C. 6421 (Ont. Gen. Div.), revd. (1993), 63 O.A.C. 184 (C.A.), refd to. [para. 46].

Statutes Noticed:

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 239 [para. 5 et seq.].

Counsel:

M. Steidman, Q.C., and R. Pyne, for the appellant;

H. Connelly, for the respondent.

This appeal was heard before Sheppard, J., of the Ontario Court (General Division), who released the following judgment on February 21, 1997.