Ramlal v. R. - TCC: Gross negligence penalty affirmed - fictitious business loss

Ramlal v. R. - TCC:  Gross negligence penalty affirmed - fictitious business loss

http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/127829/index.do

Ramlal v. The Queen  (January 27, 2016 – 2016 TCC 26, Masse D.J.).

Précis:   Another fictitious business loss case where the only issue was the imposition of a gross negligence penalty (the amount of the penalty does not appear in the decision).  The appeal was dismissed with costs.

Decision:   Nothing unexpected:

[42]        There is no doubt that the Appellant’s 2009 tax return and his request for loss carryback contained false statements — the Appellant did not carry on a business and he did not incur any business losses whatsoever. In the circumstances of this case, I can come to no other conclusion than that the Appellant was wilfully blind and grossly negligent as to the falsity of these statements. This is especially so since he signed his return and thus certified the accuracy of the information contained therein without bothering to even look at the return or make any efforts at all to verify the return’s accuracy. As such, he is properly subject to the penalties imposed on him pursuant to subsection 163(2) of the Act.

[43]        For all the foregoing reasons, this appeal is dismissed. The Respondent is entitled to her costs if she wants them.