Income Tax
Penalties
Judicial review of rejection of second-level request to cancel penalty for failure to report income under taxpayer relief provisions—Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 220(3.1) giving Minister broad open-ended discretion in granting penalty relief—Officials to whom such authority delegated having same discretion—Taxpayer Relief Guidelines: Information Circular 07-1 directing Minister may grant penalty relief in extraordinary circumstances—Also stating not intended to restrict legislation—Decision-maker apparently concluded taxpayer not qualifying for relief unless proving failure to report due to “extraordinary circumstances”—Decision not defensible because based on misapprehension of scope of discretion authorized by s. 220(3.1)—Application allowed.
Nixon v. Canada (Minister of National Revenue) (T-1918-07, 2008 FC 917, Campbell J., order dated July 28, 2008, 10 pp.)