Principal Issues: 1. Where a taxpayer files a NIL or an incomplete return of income, whether the Minister can refuse to accept it. 2. Whether the Minister can assess penalties and, if so, which ones.
Position: 1. Yes. 2. Yes. Subsections 162(1) or 162(2) penalties for late-filing a return of income, and subsection 163(2) for gross negligence if applicable.
Reasons: 1. In situations where a taxpayer files a return of income such that the prescribed form is substantially incomplete, whether missing relevant information or required documents, the return of income may be considered to be not a valid return and the Minister can refuse to accept it. 2. Subsection 162(1) and (2) penalties can be assessed because the taxpayer did not file a valid return of income by the filing-due date. Subsection 163(2) penalty can be assessed if the taxpayer was grossly negligent.