Welton v. The Queen, 2005 DTC 869, 2005 TCC 359 -- summary under Income-Producing Purpose

By services, 28 November, 2015

A "management fee" paid by the taxpayer, a self-employed real estate agent, to her husband was non-deductible. There was no documentary evidence to support the deduction other than invoices generated on a "totally retrospective" basis following a Revenue Canada audit. Sarchuk J. indicated (at p. 871) that:

There is substantial merit to the Respondent's position that what existed between the Appellant and her husband was nothing more than a domestic arrangement which was not and could not be considered to have created a legally binding agreement between them.

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