Roland St-Onge [TRANSLATION]:—The appeals of Mr François Durocher and of Indépendant Gaz Service Inc came before me on February 14,1980 in Montreal, Quebec. The points at issue in the case of Mr François Durocher are as follows:
(1) it is alleged that during the years 1967, 1968, 1969, 1970, 1971 and 1972, the appellant appropriated $16,619.91, representing unreported sales made by the company;
(2) it is alleged that during the same period he failed to report
(a) interest income totalling $840.86;
(b) collected rents totalling $4,110; and
(3) it is alleged that he appropriated $38,835.44 in personal expenses paid by the company to acquire a trailer and for repairs to his residence.
After a hearing lasting one day, the Board decided that there were sufficient misrepresentations by the appellant to authorized the Minister to apply subsection 46(4) of the Income Tax Act and assess the appellant beyond the four year period.
Following this decision, the parties reached an agreement concerning the following amounts:
(1) the expenses of $2,079.45 allowed by the Department of National Revenue and appearing under the heading “Other Expenses Allowed” are increased by $1,829.79 to $3,909.24;
(2) the following amounts, which were taxed as benefits in relation to telephone, electricity, heating and residence charges, will be deducted from the appellant’s income:
1970 taxation year—$360
1971 taxation year—$360
1972 taxation year—$150
(3) the amount of $2,200 which was taxed as an appropriation in 1967 (trailer), will be deducted from the appellant’s income for the 1967 taxation year;
(4) an additional amount of $1,125 is allowed in respect of automobile expenses, allocated in proportion to the expenses disallowed in each of the taxation years in dispute.
The appellant’s appeal in respect of the 1967, 1968, 1969, 1970, 1971 and 1972 taxation years is therefore allowed in part and the matter is referred back to the respondent for reassessment.
Appeal allowed in part.