Précis: A net worth assessment of the taxpayer revealed a $1.8 million increase in her net worth from 2005 to 2009. She was assessed for both income tax and GST on the unreported income and taxable supplies at issue. She had a variety of explanations for the increase including a particularly amusing story about her brother bringing her Ziploc bags of cash from her boyfriend. The Court was not amused and dismissed the appeals (apart from a $4,800 error in math) and sustained the imposition of gross negligence penalties. Costs were awarded to the Crown subject to the right of the parties to make submissions on costs within 30 days.
Truong v. R. - TCC: $1.8 million increase in net worth not explained by “Ziploc bags of cash”READ MORE »