What is the burden of proving the reasonableness of deductions from business income?
British Columbia, Canada
The following excerpt is from D.M.B. v D.W.A.L, 2018 BCSC 1254 (CanLII):
The burden of proving the reasonableness of deductions from business income, whether in the context of self-employment or within a wholly-owned corporation, lies with the spouse making the deduction. It is the obligation of that spouse to fully disclose the financial information and documentation relied upon to justify the deduction of each expense. It is not the other party's responsibility to hire, nor is it the court's obligation to appoint, an accountant or other professional to assess and challenge the reasonableness of the deduction, although of course both are at liberty to do so in appropriate circumstances. For a recent affirmation of these principles, see Cunningham v. Seveny, 2017 ABCA 4. [Emphasis added by Kent, J.]
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