The Minister assessed the Appellant using the net worth method for failing to report substantial income from his contracting business and rental properties in the 2009, 2010, and 2011 taxation years, and imposed gross negligence penalties.
The Tax Court found the Appellant was not a credible witness and upheld the net worth assessments, subject only to specific concessions made by the Respondent regarding personal expenditures.
The Court also upheld the gross negligence penalties, finding the Appellant knowingly understated his income.
