http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/142912/index.do
Gray v. The Queen (March 8, 2016 – 2016 TCC 54, Masse D.J.).
Précis: Yet another Fiscal Arbitrators case involving a false business loss claim - this time by an 85 year old taxpayer. The gross negligence penalty was sustained.
Decision: As would be expected:
[53] There is no doubt that the Appellant’s 2008 tax return contained false statements — the Appellant did not carry on a business and he did not incur any business losses whatsoever. I am of the view that, in the circumstances of the present case, the Appellant had knowledge of the false statements or at the very least he was wilfully blind or otherwise grossly negligent in the making of, participating in, assenting to or acquiescing in the making of, a false statement in his return. He signed his return and thus certified that the return was complete and accurate — it was not. He had a duty to exercise care and accuracy in the completion of his return and he failed in this duty, making no effort at all to verify the accuracy and completeness of his return. His actions are not only negligent, but are grossly negligent. As such, he is properly subject to the penalties imposed on him pursuant to subsection 163(2) of the Act.
[54] For all the foregoing reasons, this appeal is dismissed. The Respondent is entitled to her costs if she wants them.