Sobier,
J.T.C.C.
(orally):—
Ms.
Webster,
the
Income
Tax
Act,
R.S.C.
1952,
c.
148
(am.
S.C.
1970-71-72,
c.
63)
(the
"Act")
of
Canada
provides
for
the
payment
of
tax
on
a
self-assessing
basis,
that
is,
people
are
to
divulge
all
their
sources
of
income
and
report
them
in
their
tax
returns.
Unfortunately,
a
person
such
as
yourself
may
not
in
all
circumstances
know
that
something
should
be
reported.
I
elieve
that
your
excuse
and
the
problem
here
is
that
you
had
amounts
deducted
at
source
on
the
RSP
and
therefore
you
believed
that
was
the
end
of
the
matter.
Unfortunately,
that
is
not
the
case.
As
you
see
in
the
Maltais
v.
M.N.R.
case,
[1991]
2
C.T.C.
2651,
91
D.T.C.
1385
(T.C.C.),
even
the
failure
to
do
so
in
good
faith
is
not
permitted.
The
old
section
of
the
Act
made
it
more
difficult
for
the
Crown
to
prove
its
case
because
they
had
to
show
wilful
neglect
or
gross
negligence,
whereas
now
the
liability
is
upon
you
under
the
penalty
section
in
that
if
you
fail
to
report
income
in
a
previous
year
and
subsequently
you
fail
again
to
report
income,
then
you
are
liable
to
the
penalty.
The
respondent
in
this
case
has
met
the
onus
placed
upon
it
and
has
shown
that
in
two
years
you
did
fail
to
disclose
sources
of
income.
As
Judge
Bowman
said
in
the
case
cited
at
page
2653
(D.T.C.
1387):
“It
is
not
necessary
for
me
to
decide
in
this
appeal
whether
the
amounts
which
the
taxpayer
fails
to
report
in
two
or
more
taxation
years
need
to
be
similar
in
nature.”
That
is
if
you
fail
to
report
income
from
investments
one
year
and
fail
to
disclose
income
from
RSPs
the
next
year
it
does
not
matter.
In
this
case
you
failed
to
report
income
from
RSPs
in
both
years,
plus
the
deferred
profit
sharing
plan.
I
adopt
the
reasons
of
Judge
Bowman
in
the
Maltais
case,
especially
the
part
which
states
that
the
liability
is
strict
but
not
absolute.
However,
on
a
strict
liability
basis
you
have
failed
to
show
where
the
Minister’s
assessment
is
incorrect
and
I
believe
the
penalty
has
been
correctly
levied,
as
well
as
the
arrears
interest.
Therefore,
I
am
going
to
have
to
dismiss
your
appeal.
Thank
you.
Appeal
dismissed.
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