| Citation: |
M.N.R. v. Zen, 2009 FC 531, [2010] 1 F.C.R. D-3 |
T-1360-06, T-1024-08 |
Income Tax
Practice
Summary application for compliance order pursuant to Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 231.7(1) directing respondent conform to information, documents request—Applicant acting under authority conferred by Act, s. 231.2(1)—Applicant seeking Net Worth Statements for purpose of collecting outstanding interest and penalties on assessment from 1986 against respondent in latter’s capacity as director of Pacific Refineries Inc.—In related application heard concurrently with applicant’s, respondent applying for judicial review of notices of requirement for information—Whether Minister having authority under Act to collect interest on assessment—Substantive authority for accrual of interest on liability of director assessed pursuant to s. 227(10) found in Act, s. 227.1—No need to read authority into Act—Parliament intending to hold directors liable, on ongoing basis, for interest and penalties on amounts outstanding under s. 227.1—S. 227(10) expressly providing for modification of wording of Act to ensure liability, doing so not resulting in substantive change to Act—Therefore, Minister may properly claim interest on assessment under s. 227.1—Application allowed.
M.N.R. v. Zen (T-1360-06, T-1024-08, 2009 FC 531, Blanchard J., judgment dated May 26, 2009, 14 pp.)