What is the effect of the Respondent's failure to produce receipts for expenses?

The respondent was aware that the petitioner took the position his income was not as reported on his tax return and that he was unreasonably deducting expenses. He was served with a notice to disclose and notice to reply to written questions. In substance he was asked to detail the terms of his compensation/remuneration and if he was responsible for any expenses to detail the specific expenses including amounts and provide receipts. The answers provided are evasive and incomplete. He says that “over time” he is paid on either a percentage basis or on a cents/mile basis. However, he avoids being specific about the basis upon which he is presently compensated and does not provide specifics as to what the actual rate is. He says that “while contracting with the various employers mentioned” he is responsible for various expenses. He says he would only claim a deduction on his tax return for an expense if he had a receipt. However, despite the specific request he fails to produce any receipts. While he attempts to clothe the expenses claimed in a shroud of legitimacy, he refuses to produce the receipts so that the claim of legitimacy may be challenged. It is an appropriate circumstances in which to draw an adverse inference in accordance with the principles in Murray v. City of Saskatoon, supra. The adverse inference is that production of the receipts would not have been favourable to the respondent.