Federal Court of Appeal Cour d'appel fédérale Date: 20111117 Docket: A-349-10 Citation: 2011 FCA 330 CORAM: EVANS J.A. PELLETIER J.A. LAYDEN-STEVENSON J.A. BETWEEN: Gregory Welch Appellant and HER MAJESTY THE QUEEN Respondent Heard at Winnipeg, Manitoba , on November 17, 2011. Judgment delivered from the Bench at Winnipeg, Manitoba , on November 17, 2011. REASONS FOR JUDGMENT OF THE COURT BY: PELLETIER J.A. Federal Court of Appeal Cour d'appel fédérale Date: 20111117 Docket: A-349-10 Citation: 2011 FCA 330 CORAM: EVANS J.A. PELLETIER J.A. LAYDEN-STEVENSON J.A.

BETWEEN: Gregory Welch Appellant and HER MAJESTY THE QUEEN Respondent Reissued REASONS FOR JUDGMENT OF THE COURT (Delivered from the Bench at Winnipeg, Manitoba, on November 17, 2011) PELLETIER J.A. [1] Despite Mr. Fleetwood’s able presentation, we are unable to find that the Tax Court Judge committed a palpable andoverriding error in failing to reduce the appellant’s income by the amounts of $12,500 and $28,000 for the 2003 and 2004 tax years. Inour view, there was evidence, in the form of the invoices submitted by the appellant to Cactus Cowboys, to support the Tax CourtJudge’s conclusion.

The evidence to the contrary was Mr. Welch’s oral testimony, which the Tax Court Judge found was generally notcredible. To the extent that the Tax Court Judge’s conclusion rests on inferences Housen v. Nikolaisen, 2002 SCC 33 , [2002] 2SCR 235, is authority for the proposition that palpable and overriding error is the standard of review for both findings of fact andinferences of fact. [2] The appeal will therefore be dismissed with costs. "J.D. Denis Pelletier" J.A. FEDERAL COURT OF APPEAL NAMES OF COUNSEL AND SOLICITORS OF RECORD DOCKET: A-349-10

(APPEAL FROM A JUDGMENT OF THE HONOURABLE D’ARCY. J. OF THE TAX COURT OF CANADA DATED AUGUST 27, 2010, DOCKET NO. 2008-1387) STYLE OF CAUSE: GREGORY WELCH v. HER MAJESTY THE QUEEN PLACE OF HEARING: Winnipeg, Manitoba DATE OF HEARING: November 17, 2011 REASONS FOR JUDGMENT OF THE COURT BY: EVANS, PELLETIER & LAYDEN-STEVENSON DELIVERED FROM THE BENCH BY: PELLETIER J.A. APPEARANCES : Gregory M. Fleetwood Melissa Burkett FOR THE APPELLANT Cameron G. Regehr Brooke Sittler FOR THE RESPONDENT SOLICITORS OF RECORD : Aikins MacAulay Thorvaldson LLP FOR THE APPELLANT Myles J. Kirvan Deputy Attorney General of Canada FOR THE RESPONDENT