INCOME TAX |
Reassessment |
Boucher v. Canada
A-577-02
2004 FCA 46, Sharlow J.A.
29/1/04
4 pp.
Appeal from Tax Court's dismissal of appeal from reassessment for 1988 income tax year ([2003] 1 C.T.C. 2242) --Income Tax Act, s. 152(4)(a)(i) permitting late reassessment if taxpayer making misrepresentation attributable to neglect, carelessness or wilful default in filing return or supplying information--Tax Court holding four-year limitation period to reassess lost when taxpayer making any misrepresentation that is false--Incomplete and therefore incorrect statement of law--Must be, in addition to misrepresentation, finding that misrepresentation attributable to neglect, careless or wilful default in supplying incorrect information--But reasons as whole disclosing Tax Court concluded evidence established requisite degree of fault on part of appellant--Additionally, by combined operation of s. 163(2)(a)(i) and s. 163(2.1)(a) penalty may arise even in loss year because, in effect, previously recognized loss ignored for purposes of penalty calculation--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 152(4)(a)(i) (as am. by S.C. 1998, c. 19, s. 181), 163(2)(a)(i), (2.1)(a).