Vine Estate v. Canada, 2015 DTC 5063 [at at 5880], 2015 FCA 125 -- summary under Onus

By services, 28 November, 2015

The taxpayer's return, prepared by his accountants, failed to show $1.07 million of capital gain and $2 million recapture of depreciation respecting Victoria Park. In the course of upholding the finding that this was a misrepresentation attributable to neglect, thus allowing the taxpayer to be assessed beyond the normal reassessment period (see summary under s. 152(4)(a)(i)), Webb JA disagreed with the trial judge's statement that "if the Minister establishes that there is a right to reassess after the expiration of the normal period, the onus will then shift to the taxpayer" to show that the failure to include the amount in the return was not due to a misrepresentation attributable to neglect, carelessness or wilful default, stating (at paras. 24-25):

[T]he onus is on the Minister to establish, on a balance of probabilities, that the taxpayer or the person filing the return … has made a misrepresentation; and … such misrepresentation is attributable to neglect, carelessness, or willful default. ... There is no shifting onus.

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onus does not shift to taxpayer to disprove neglect, carelessness, or wilful default
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