http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/127828/index.do
Mallette v. The Queen (January 27, 2016 – 2016 TCC 27, Masse D. J.).
Précis: Another fictitious business loss case where the only issue was the imposition of a gross negligence penalty (the amount of the penalty does not appear in the decision). The appeal was dismissed with costs.
Decision: Nothing unexpected:
[39] There is no doubt that the Appellant’s 2008 tax return and his request for loss carryback contained false statements — the Appellant did not incur any business losses exceeding $520,000. This was a made up number. The Appellant is a sophisticated, intelligent and well-educated man who is quite savvy in business matters. I can come to no other conclusion than that the Appellant acted either knowingly or with wilful blindness in signing a return with made up numbers. The magnitude of his claim was huge and should have raised significant suspicions and concerns. As such, he is properly subject to the penalties imposed on him pursuant to subsection 163(2) of the Act.
[40] For all the foregoing reasons, this appeal is dismissed. The Respondent is entitled to her costs if she wants them.