Anatoliy Vlasov

The appellant brought a motion to strike the respondent's reply, arguing that the Minister was statute-barred from reassessing his 2017 taxation year.

The appellant contended that his characterization of a real estate gain as a capital gain rather than business income was a question of mixed fact and law, which could not constitute a misrepresentation under subparagraph 152(4)(a)(i) of the Income Tax Act.

The Tax Court dismissed the motion, finding it was not plain and obvious that the respondent's position had no reasonable prospect of success, as a filing position could potentially constitute a misrepresentation depending on the factual context to be determined at trial.

The respondent Minister brought motions under sections 86 and 99 of the Tax Court of Canada Rules (General Procedure) seeking to examine the appellants' father as a non-party and to compel a brokerage firm to produce account records.

The Minister alleged the appellants received unreported shareholder benefits from offshore trading accounts.

The Court granted the motions, finding the father had relevant information not obtainable elsewhere and that the brokerage records were likely relevant to tracing the funds.