Digests

Customs and Excise

Excise Tax Act

Judicial review of decision wherein director at Canada Revenue Agency (CRA) not using discretion to grant applicant relief under Excise Tax Act, R.S.C., 1985, c. E-15 (ETA), s. 281.1—Applicant not remitting HST on sale of condominium units—After unsuccessfully appealing assessment, applicant seeking to have interest, penalties cancelled, waived under tax fairness provisions in ETA—Primary basis for applicant’s request fact he was suffering from severe depression at time real estate transactions taking place, failure of collecting appropriate taxes unintentional—CRA issuing decision letter denying applicant’s request because of failure to show extraordinary circumstances preventing compliance with statutory obligations—Applicant subsequently seeking independent review from director—Decision letter refusing appellant’s independent review request containing no explanation as to how director viewed his condition—While reasons in tax fairness decisions expected to be short, taxpayer should be informed as to how primary consideration dealt with—Given specific facts before director in this case, director required to provide some reasons accompanying decision, explaining, even if very briefly, why primary ground not accepted—Omission to do so leaving decision-making process lacking necessary component of transparency—Decision unreasonable—Application allowed.

Holmes v. Canada (Attorney General) (T-2135-07, 2010 FC 809, O’Keefe J., judgement dated August 5, 2010, 14 pp.)