Précis: The taxpayer, an employee of the Government of Ontario, claimed business losses of $209,664.62 and $167,111.43 in 2008 and 2009, respectively. The losses were part of a “Detax” plan recommended by her tax preparer, Mr. Rasool. CRA denied the losses and imposed gross negligence penalties. The Tax Court rejected much of the taxpayer’s evidence, particularly the suggestion that the losses were added to the returns after she had signed them and without her knowledge. As a result the gross negligence penalties were sustained and the appeal was dismissed with costs to the Crown.
Arbuckle v. R. – TCC: Gross negligence penalties upheld in “Detax” programREAD MORE »