What is the test for knowing that a tax return is not being filed?

Support for the position that simply knowing that a tax return is not being filed is not sufficient for the purposes of subsection 110.6(6) of the Act can be found in Ragobar v. The Queen [1995] 1 C.T.C. 2364. In that case the taxpayer did not file his tax return within the time period referred to in subsection 110.6 (6) of the Act. The explanation provided by the individual taxpayer was described in paragraph 21 of that case as follows: 21 The appellant explained his failure to file on time as follows. With respect to his employment income the deductions made by his employer at source sufficiently covered the taxes on that income and therefore he naively thought no return was necessary. As to the capital gain on the sale of 32 Askin he again naively thought that one need not report such gains until one had exhausted the capital gains deduction limit. Of course the Act obliges taxpayers to file returns on time. The question in the present case, however, is did the appellant “knowingly or under circumstances amounting to gross negligence” fail to file his return and declare the capital gain in time?