Weinberg Family Trust – Tax Court of Canada states that it lacks jurisdiction to reverse a provincial gross negligence penalty

V. Miller, J stated emphatically that the Tax Court did not have the jurisdiction to consider an appeal by a purported Alberta trust which had been assessed by CRA for Ontario income tax (on the basis of being resident in Ontario) as well as for Ontario gross negligence penalties.

This case is unusual in that there was no federal tax or penalty at issue (and the Ontario issues were appealed simultaneously in the appropriate Ontario court). However, it suggests that when taxpayers in agreeing provinces appeal federal penalties, they may have to file protective appeals of any corresponding provincial penalty.

Neal Armstrong. Summary of Weinberg Family Trust v. The Queen, 2016 TCC 37 under Taxation Act, 2007 s. 125(2).