Villeneuve v. The Queen, 2004 DTC 2258 (TCC), rev'd 2004 DTC 6077 (FCA)

Assessments could be made of the taxpayer beyond the normal assessment period in respect of an arrangement under which he paid an individual $8,000 in cash for making a claim on his behalf for a tax refund of $12,364 in respect of deductions for fictitious dependants. Lamarre Proulx T.C.J. stated (at p. 2261):

"According to the theory of mandate, the mandator agrees to the act performed by the mandatary when he ratifies it. In accepting the refund of the overpayment of tax and handing most of it back to the person responsible for the payment, the appellant ratified that person's wrongful act."

The taxpayer paid an individual $8,000 in cash for making a claim on his behalf for a tax refund of $12,364 in respect of deductions for fictitious dependants.

In finding that the taxpayer was not subject to a penalty for gross negligence, Lamarre Proulx T.C.J. noted the lack of sophistication of the taxpayer and characterized (p. 2262) his action as resulting more from an "ambush" than "a deliberate decision on his part to contravene the Act".