What is the burden of proving reasonableness for deductions from income from a wholly owned corporation?
British Columbia, Canada
The following excerpt is from J.M.M. v. C.J.R., 2019 BCPC 199 (CanLII):
Where a party claims a number of expense deductions for their wholly owned corporation, the burden of showing the reasonableness of the deductions from business income falls on the spouse making the deduction. It is the obligation of the party who deducts expenses from income to disclose the financial information and documentation relied upon to justify the deduction of each expense: Wiebe v. Treissman, 2017 BCSC 1523 at para. 94.
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