The taxpayer bought a property in November 2002 for $172,000 and sold it for $285,000 in December 2007. The taxpayer claimed that his costs should be increased by $52,000 of renovation expenses expended in 2002, but Lamarre J agreed with the Minister that the taxpayer had insufficient evidence to support that such a renovation had taken place.
The taxpayer argued that his lack of records should not prejudice his case because the renovations took place more than six years before the hearing. Lamarre J stated (at para. 38):
[E]ven though the expenses were incurred in 2002, the last taxation year to which the vouchers relate is the year in which the appellant claimed the expenses in order to reduce his capital gain, which he realized in 2007. Therefore, the vouchers could not be destroyed until the later of the expiration of six years after 2007 (subsection 230(4)) and the date on which his appeal is finally disposed of (subsection 230(6)).