The appellant claimed input tax credits (ITCs) for GST paid to placement agencies that supplied casual workers.
The Minister reassessed the appellant outside the normal reassessment period, denying the ITCs and imposing gross negligence penalties, alleging the invoices were false or of convenience and part of a scheme to not remit GST.
The Tax Court allowed the appeal and vacated the reassessment, finding the Minister failed to prove the appellant made a misrepresentation attributable to neglect, carelessness, or wilful default, or committed fraud.
The evidence did not establish the appellant was aware of or complicit in the suppliers' failure to remit GST.
