In Radonjic v. The Queen (2013 FC 916),
the taxpayer brought an application for judicial review of the
CRA's refusal to make certain adjustments to the taxpayer's
tax returns after the normal reassessment period had expired.
In 2003, the taxpayer start playing online poker. After
consulting with his accountant, the taxpayer treated his gambling
winnings as income in 2004, 2005, 2006 and 2007. Later, he
concluded that his gambling winnings were likely not taxable.
Accordingly, the taxpayer filed a request for an adjustment under
subsection 152(4.2) of the Income Tax Act asking that the
income tax he had paid be returned to him.
The CRA denied the taxpayer's adjustment request. The
taxpayer then brought an application for judicial review of the
decision to deny the adjustment request.
The court concluded that the CRA had fully considered all of the
taxpayer's submissions, and that there was no evidence of
procedural unfairness or bad faith by the CRA.
However, the court concluded that the CRA had misinterpreted or
misunderstood the taxpayer's activities, and had drawn
unreasonable and unsupportable conclusions about the tax treatment
of the taxpayer's gambling winnings:
 ... The Minister's exercise
of her discretion under subsection 152(4.2) of the Act in this case
lacks intelligibility and justification and, in my view, falls
outside the range of possible, acceptable outcomes which are
defensible in respect of the facts and law.
Overall, the court found that the taxpayer was simply an
enthusiastic and ever-hopeful poker player engaged in a personal
The court quashed the CRA's decision and returned the matter
to the CRA for reconsideration in accordance with the court's
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