Daszkiewicz v. R. - TCC: Gross negligence penalties affirmed - fictitious business losses

Daszkiewicz v. R. - TCC:  Gross negligence penalties affirmed - fictitious business losses


Daszkiewicz v. The Queen  (February 12, 2016 – 2016 TCC 44, Masse D.J.).

Précis:   Another fictitious business loss case where the only issue was the imposition of gross negligence penalties with respect to fictitious business losses.  The appeal was dismissed with costs.

Decision:   Nothing unexpected:

[51]        There is no doubt that the Appellant’s 2009 tax return and his request for loss carryback contained false statements — the Appellant did not carry on a business and he did not incur any business losses whatsoever. I am of the view that in the circumstances of the present case, the Appellant has been wilfully blind or was otherwise grossly negligent in the making of, participating in, assenting to or acquiescing in the making of, a false statement in his return. He was content to let FA take care of everything and he did not care to know what FA did in completing his tax return. He could not be bothered to inform himself. He simply signed his return where he was instructed to sign without looking at it. In so doing, he certified that the return was complete and accurate — it was not. He had a duty to exercise care and accuracy in the completion of his return and he failed in this duty, making no effort at all to verify the accuracy and completeness of his return. Had he made even the most minimal effort, he would have quickly and easily discovered the blatantly false information contained in the return. His actions are not only negligent, but are grossly negligent. As such, he is properly subject to the penalties imposed on him pursuant to subsection 163(2) of the Act.

[52]        For all the foregoing reasons, this appeal is dismissed. The Respondent is entitled to her costs if she wants them.