http://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/212598/index.do
Robertson v. Canada (November 28, 2016 – 2016 FCA 303, Pelletier, Scott (author), de Montigny JJ. A.).
Précis: The taxpayer had roughly $600,000 of unreported income from US private corporation stock options in 2006 and 2007, years that would otherwise be statute-barred. CRA assessed on the basis of negligence. The Tax Court upheld the assessment. The Federal Court of Appeal dismissed the appeal from the bench, with costs.
Decision: The Court of Appeal held that the taxpayer had not demonstrated any reversible error in the Tax Court decision:
[5] The Appellant challenges the Judge’s decision arguing that he erred when he determined that the Appellant never questioned his accountant on the taxation of the benefits derived from the US stock options. The Appellant conceded at trial and in his factum that he committed a misrepresentation by omitting to declare his general income from stock option benefits in 2006 and 2007. He also acknowledged that he could not recall whether he had discussed the taxation of these benefits with his accountant. The Judge described this error as an honest and inadvertent lapse of attention committed by the Appellant whilst reviewing the tax returns that had been prepared by the accountant. The Appellant assigns part of the blame on his flawed, but nonetheless firm belief at the time that these benefits were not taxable in Canada because they were generated in the United States.
[6] It was open to the Judge to draw an inference of negligence and carelessness from the Appellant’s omission to verify the validity of his belief that the US stock options he exercised were not taxable as Canadian income. Our role is not to reweigh the evidence but to ensure that it can support the Judge’s inferences of fact. In the present case it supports his determination of negligence and the consequent reassessments further to the application of subparagraph 152(4) (a) of the Act.
As a result the appeal was dismissed from the bench with costs.