Katherine Matthews

The Appellants appealed reassessments disallowing losses from dog-related activities and rental properties.

The Tax Court found that the Minister was precluded from reassessing certain years outside the normal reassessment period, except for specific personal expenses.

The Court determined that the dog-related activities were not a source of income, but the rental properties were.

The repeated-failure-to-file penalties were vacated, while the late-filing penalty for 2009 was upheld.

The Respondent filed a motion in writing to quash the self-represented appellant's employment insurance appeal for lack of jurisdiction.

The Tax Court of Canada held that it is generally inappropriate to proceed by a motion in writing in employment insurance appeals where the appellant is unrepresented.

The Court ordered the motion to be set down for an oral hearing.

The Minister reassessed the appellant for the 2014, 2015, and 2016 taxation years using a net worth assessment, imposing gross negligence penalties and reopening the statute-barred 2014 and 2015 years.

The Tax Court allowed the appeal in part.

The Minister conceded the penalties at trial.

The Court found the Minister failed to prove misrepresentation for 2014 and 2015, as the net worth assessment was unreliable and the appellant provided credible evidence of a non-taxable source of funds.

However, the 2016 reassessment was upheld as the appellant did not challenge the calculations for that year.

The respondent moved to quash the appeal on the basis that the Tax Court of Canada lacks jurisdiction to hear an appeal to waive interest on an assessment.

The Court granted the motion, noting that while the situation was anomalous, the Court is a statutory court without equitable jurisdiction to waive interest.

The appellant was advised to apply for taxpayer relief under the Income Tax Act.