The appellant appealed a reassessment of her 2012 taxation year that included unreported income of $27,497 and levied a penalty under subsection 163(1) of the Income Tax Act for repeated failure to report income.
The unreported income primarily consisted of a payment received from a real estate brokerage related to the purchase of four condominium units.
The Tax Court of Canada found that the payment constituted income from a business or property under the Stewart test.
The court also upheld the penalty, finding that the appellant failed to establish a due diligence defence, as her belief that the payment was not taxable was a mistake of law, and she did not take reasonable precautions to avoid the omission.
