INCOME TAX |
Penalties |
Robertson v. M.N.R.
T-1281-01
2003 FCT 16, Layden-Stevenson J.
10/1/03
10 pp.
Judicial review of decision of MNR assessing interest and penalties regarding applicant's tax returns for 1998 and 1999 --Decision relating to Income Tax Act, s. 220(3.1) commonly referred to as fairness provision--Whether Minister has properly exercised discretion with regard to relevant considerations and without regard to erroneous factors-- Refusal letter stated records indicate respondent had accumulated additional consumer debt in December, 2000--In such situations, cancellation of interest charges not usually granted--Finding of fact in Director, Revenue Collections' letter erroneous as record clearly indicating no additional debt, but debt consolidation--Comments contained in Director's report fly in face of Director's affidavit and reason delineated in refusal letter, contradictory--In Kaiser v. Canada (Minister of National Revenue--M.N.R.) (1995), 93 F.T.R. 66, Court stated purpose of legislative provision to allow Revenue Canada Taxation to administer tax system more fairly by allowing application of common sense in dealing with taxpayers unable to meet deadlines or comply with rules under tax system--In present case, Director made erroneous findings of fact tainting decision--Reasons do not adequately explain Director's position--Decision patently unreasonable-- Application for judicial review allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 220(3.1) (as am. by S.C. 1994, c. 7, Sch. II, s. 181; idem, Sch. VIII, s. 127).