The Minister reassessed the appellant for his 2008 to 2011 taxation years beyond the normal reassessment period, adding alleged unreported shareholder benefits and imposing gross negligence and foreign reporting penalties.
The Tax Court of Canada allowed the appeals and vacated the reassessments.
The Court found that the Minister failed to prove the alleged misrepresentations and that the appellant had exercised reasonable care in relying on professional accountants to file his returns.
The Court also vacated the penalties, finding no gross negligence and that the appellant had established a due diligence defence regarding his foreign reporting obligations.
