http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/135303/index.do
Maynard v. The Queen (January 28, 2016 – 2016 TCC 21, Masse D.J.).
Précis: Another fictitious business loss case where the only issue was the imposition of a gross negligence penalty, in this case on both husband and wife who had both claimed fictitious losses. The appeal was dismissed with costs.
Decision: Nothing unexpected:
[44] There is no doubt that the Appellants’ 2008 tax returns and their requests for loss carryback contained false statements — they did not carry on a business and they did not incur any business losses whatsoever. In the circumstances of this matter, I can come to no other conclusion than that the Appellants were wilfully blind and grossly negligent as to the falsity of these statements. This is especially so since they signed their returns certifying the accuracy of the information contained therein without bothering to even look at the returns or make any effort at all to verify the returns’ accuracy. As such, they are properly subject to the penalties imposed pursuant to subsection 163(2) of the Act.
[45] For all the foregoing reasons, these appeals are dismissed. The Respondent is entitled to her costs if she wants them.