The Appellant appealed reassessments for the 2013, 2014, and 2015 taxation years imposing penalties under paragraphs 162(7)(a) and 162(10)(a) of the Income Tax Act for failing to file T1135 forms regarding a Bank of China account.
The Tax Court of Canada found that the Appellant was merely a nominee and held legal title to the account, while his father was the beneficial owner who funded and controlled it.
Consequently, the Appellant had no obligation to file the forms.
The appeal was allowed and the penalties were vacated.
