Précis: This is an unusual case where the taxpayer innocently, but mistakenly, over-contributed to his RRSP for three years in the 90’s. CRA assessed him under Part X.1 of the Income Tax Act (the “Act”) with tax and penalties in respect of that over-contribution. Mr. Chiang appealed both the tax and the penalties. The Court dismissed the appeal as to the tax payable but allowed the appeal on penalties. The Court found that on the evidence Mr. Chiang had established a due diligence defence that precluded the application of penalties.
Chiang v. R – TCC: Taxpayer not liable for penalties on over-contribution to RRSPREAD MORE »