– 3275 Campion Rd, Victoria, BC
9,300 sqft SFH on 8.4 acres; ask price $6.7M (down from $15M).
“The Appellant resides at 3275 Campion Road in Saanichton, Vancouver Island, British Columbia.”
“When the Appellant filed his Canadian income tax returns for the 2002 and 2003 taxation years, he reported the following income:
2002 Net Rental Income $20,000; Net Income $19,100
2003 Net Rental Income $20,000; Net Income $22,312” …
“After completing the Net Worth Analysis and reviewing the Notices of Objection, officials of the CRA concluded that the Appellant earned and failed to report the following income:
(Note: Pension income of $2400 was also included for each year.)”
“Q. Okay, and in particular what did you gather from this new information? What did it tell you?
A. That there was some accounts and assets held outside of Canada that I had not previously been aware of.
Q. So with respect to the assets then, what did that screen from the bank indicate?
A. That the UBS account value was [$] 2,097,000. There was also an account in Germany that had a value estimated at [$] 200,000. And there were blue-chip stock holdings in Iran worth [$] 800,000.
Q. And I notice also it indicates there was a Banker’s Acceptance worth [$] 200,000, is that right?
A. Yes it does.”
“It should also be noted that the Appellant sold a home located at Beech Drive in Victoria for $4,500,000 (original purchase price was $1,075,000 and significant improvements were added). The Appellant’s home at 3275 Campion Road is currently for sale. The original asking price of the Campion Road property was $15,000,000. The current asking price is $13,500,000.”
“Based on the comments as outlined above, I believe that the gross negligence penalties imposed by the Minister should be upheld.
Before concluding, I wish to quote from United States Supreme Court Justice Oliver Wendell Holmes. Justice Holmes said:
“Taxes are the price we pay for civilized society”.
I believe that this comment by Justice Holmes applies in this situation.”
– from ‘Saeed Korki v Her Majesty The Queen’, Tax Court of Canada, Docket 2008-74(IT)G, 2010
[hat-tip to ‘oh oh’ at VCI 23 Sep 2012 3:06pm for alerting us to this case. – ed.]