The taxpayer declares that this amount represents the cash that his mother had accumulated since his birth in a "metal safety box," specifically for him.
There are several ways to save. In these modern times, some may seem a bit more archaic and surprising.
A taxpayer with no professional training and declaring an annual income of about $23,000, receives a reassessment notice from the tax authority for additional income of $180,000. The story begins when the tax authority discovers that the taxpayer invested $25,000 with a securities broker. The taxpayer claims that this amount represents the cash that his mother had accumulated since his birth in a "metal safety box," specifically for him.
In court, the official admits that the taxpayer mentioned a safe, but "reaffirms that he cannot conceive how someone can have such a large amount in a safe." That is why the official establishes a "reassessment based on indicia," a right that is recognized to him.
The Court* concludes that "just because a piece of evidence is surprising does not mean it can be automatically deemed unreasonable." The evidence of the "sock drawer" method and the taxpayer's explanations are quite "plausible, credible, and convincing" enough to undermine the "accuracy of the presumption of validity of the reassessment notice."
The court rules in favor of the taxpayer, who provided clear and unchallenged evidence, while the tax authority failed to present convincing evidence.
May your Christmas stocking be transformed into a "sock drawer" filled with happiness, health, and money during the holiday season.
*C.Q. 125-80-000033-099, 2010-10-14
