Alnashir Tharani

The Minister reassessed the appellant's 2010 taxation year beyond the normal reassessment period, adding $92,522 to his income and imposing gross negligence penalties.

The reassessment was based on an entry in the corporation's Schedule 100 showing a shareholder advance.

The appellant argued the entry was an accounting error and he did not earn the undeclared income.

The Tax Court of Canada allowed the appeal, finding the Minister failed to prove on a balance of probabilities that the appellant made a misrepresentation attributable to neglect, carelessness, or wilful default.

The evidence supported the appellant's position that the entry was an error, and the Minister's assumptions based on later years were insufficient to justify reopening the statute-barred year.

The appellant appealed a GST assessment for unremitted net tax on the sale of a commercial property.

The buyer was not registered for GST at the time of the sale but was later retroactively registered to the date of the sale.

The Tax Court of Canada held that the retroactive registration created a presumption of continuous registration, satisfying the exception under paragraph 221(2)(b) of the Excise Tax Act.

The appeal was allowed and the assessment vacated.