Hong Ky (Eric) Luu

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 corporation paid rent on behalf of its shareholder for a residential condo in Montreal.

The Minister assessed the Appellant for failure to withhold and remit Part XIII tax on the rental payments, on the basis that the landlord was a non-resident living in Italy.

The Appellant argued it did not know the landlord was a non-resident.

The Tax Court dismissed the appeal, finding that the landlord was a non-resident and that liability under subsection 215(6) of the Income Tax Act is absolute and does not require the payer to have knowledge of the payee's non-resident status.