"The Tax Court Judge, at page 30 of his oral reasons, also stated:\n\n[…] Mr. Deyab’s failure to report the shareholder benefits at issue in this appeal were attributable to both neglect and carelessness. Given the amounts of shareholder benefits which Mr. Deyab admittedly knew he received, and knowingly did not report, it is also my view that he did not report the shareholder benefits at issue in these Appeals both knowingly and in circumstances amounting to gross negligence.\n\n[emphasis added]\n\nSince Mr. Deyab’s position, which he maintained throughout the Tax Court hearing and in this appeal, was that he was simply repaying himself amounts that he had previously advanced to M.D. Consulting, there is no basis for the conclusion that Mr. Deyab “admittedly knew he received” shareholder benefits. Mr. Deyab knew he was withdrawing funds from M.D. Consulting but since, in his view, these were simply amounts that were payable to him, it does not lead to the conclusion that he admittedly knew he was receiving shareholder benefits. There is no basis for the conclusion that Mr. Deyab admittedly knew that he was receiving shareholder benefits. This conclusion formed the foundation for the Tax Court Judge’s finding that the gross negligence penalties should be confirmed. Therefore, the Tax Court Judge made a palpable and overriding error in reaching this conclusion.\n\nAs a result, the issue of whether the gross negligence penalties could be assessed will be considered based on the record."