Minister re-assessed taxpayer for taxation years 2013 and 2014 using net worth assessment. Taxpayer appealed contending that he had only omitted $3,000 in 2013 by inadvertence, that Minister had failed to include depreciation in re-assessing, and that penalties and interest not warranted. Appeal dismissed. Burden of proof was on taxpayer. Taxpayer’s account books were not trustworthy. Several numbered invoices were missing. Taxpayer had produced no non-taxable origin for increase in net worth. Auditor had taken depreciation into account. Penalties justified as taxpayer had made false statement or omission equivalent to gross negligence. Taxpayer was experienced in running a business and kept his own accounts so was in position to catch errors and omissions.
Coutu c. La Reine (2018), 2018 CarswellNat 3734, 2018 CarswellNat 3962, 2018 TCC 143, 2018 CCI 143, Dominique Lafleur J. (T.C.C. [Informal Procedure]).
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