The deceased ("Roud") held shares in a corporation that was converted into an income trust. With no rollover treatment available, she realized a capital gain of approximately $71,000. Neither she nor another individual ("Murphy"), who had her power of attorney, was aware of the gain, and consequently Murphy omitted it from Roud's return.
Boyle J. found that the failure to report the gain was a misrepresentation attributable to neglect or carelessness, so that the limitations period did not apply. The taxpayer had applied for discretionary relief, and Boyle J. stated (at para. 14) that the situation was a "compelling case for the Minister to consider relief of at least some of the interest."