Chris Eccles

The appellant appealed net worth reassessments for her 2008, 2011, 2012, and 2013 taxation years.

The Tax Court found the 2008 reassessment was validly raised beyond the normal reassessment period due to misrepresentation regarding a principal residence exemption claim.

The Court allowed the appeals in part, reducing the amounts of unreported income by accepting certain deposits as family gifts and non-taxable items, while upholding capital gains inclusions for properties held in a bare trust by the appellant's daughter.

Gross negligence penalties were adjusted accordingly.

The appellant sought enhanced costs on a solicitor-client basis following a successful motion to strike the respondent's reply.

The Tax Court of Canada declined to award solicitor-client costs, finding the respondent's conduct was not reprehensible, scandalous, or outrageous.

However, considering the volume of work required to address the defective 125-page reply, the Court awarded a lump sum of $10,000 in costs to the appellant, which exceeded the Tariff amount.