Radelet – Tax Court of Canada finds that the threat of a gross negligence penalty imposition was not “duress” vitiating a waiver

In addition to rejecting the (self-represented) taxpayer’s largely unsupported allegations that he had lacked mental capacity when he executed a waiver (extending the normal reassessment period so that CRA could await his submissions respecting what it considered to be an unreported capital gain of $445,551 and a questionable business loss of $400,000), Bocock J also rejected the taxpayer’s submission that the waiver had been executed under the “duress” of a threat of a gross negligence penalty - which was not untoward in the context of an unreported capital gain.

Neal Armstrong. Summary of Radelet v. The Queen, 2017 TCC 159 under s. 152(4)(a)(ii).