For which of the following circumstances would the interest and penalties likely NOT be waived?
a.A taxpayer with only employment income filed her 2018 tax return on May 4, 2019 after the CRA posted an incorrect news release saying the deadline for 2018 tax returns was May 5, 2019.
b.A low income single mother is hospitalized for the first half of 2018 and uses all of her savings to pay for food and shelter for her 3 minor age children so she is unable to pay her 2018 taxes owing.
c. A taxpayer is late filing his 2018 individual tax return because his house was destroyed in a fire in January, 2019.
d.A taxpayer is vacationing in the Bahamas and his flight is delayed several days by mechanical difficulties with the plane so that he files his return four days after the filing deadline.
Which of the following statements regarding the General Anti-Avoidance Rule (GAAR) is incorrect?
a.There must be a tax benefit that wouldn’t otherwise have occurred for GAAR to apply.
b.GAAR will not apply if the taxpayer had a bona-fide non tax reason for doing the transaction.
c.The transaction must be considered to be a misuse or abuse of the ITA for GAAR to apply.
d.GAAR applies to transactions that deliberately break the tax law.