Xia – Federal Court of Appeal confirms a gross negligence penalty for failure to report a share of tips paid by patrons of a casino

In confirming that a slot attendant at a casino, who doubled his income through the receipt of his share of tips received from winning patrons from their non-taxable winnings, was subject to a gross negligence penalty for failure to report the tip income, de Montigny JA stated:

Mr. Xia is an intelligent and well-educated individual, has provided tax and financial advice, has knowledge of the tax benefits and consequences of security funds and life insurance, and yet made no effort to ascertain whether the tip amounts he received from casino patrons had to be reported.

Neal Armstrong. Summaries of Xia v. Canada, 2020 FCA 35 under s. 6(1)(a) and s. 163(2).