Précis: Mr. Bailey was assessed late-filing penalties of $11,817.32 and $710.58 under subsection 162(2) of the Income Tax Act (the “Act”) for his 2010 and 2012 taxation years. The Court affirmed the 2010 penalty on the evidence but in the case of the 2012 penalty held that the Crown did not demonstrate that a demand letter was sent to Mr. Bailey in order to justify a larger penalty under subsection 162(2). The Court however found that the evidence justified a smaller penalty under subsection 162(1) for 2012. Thus the appeal for 2010 was dismissed and the appeal for 2012 was allowed to delete the subsection 162(1) penalty and impose a smaller penalty under subsection 162(1).
Bailey v. R. - TCC: Penalties for late filing modified in partREAD MORE »