INCOME TAX
Penalties
Judicial review of decision by Minister of National Revenue not to grant interest relief under Income Tax Act, s. 220(3.1) in respect of delays relating to 1987‑1988 tax years’ assessment—Delays in resolving 1983 tax year assessment due to alleged conduct of judge hearing motion to strike notice of appeal thereof, said to have caused delay in resolution of 1987‑1988 tax assessments—S. 220(3.1) giving Minister discretion to waive, cancel penalty, interest otherwise payable —Standard of review for discretionary decisions made under fairness provisions of Income Tax Act reasonableness simpliciter—Applicant’s counsel refusing to have appeal heard between 1991, 1998 because concerned judge whose conduct questioned ex officio member of Appeal Division, thus rendering it inappropriate for that court to hear matter—Applicant’s position ignoring fact said judge ceased to be judge of Trial Division effective October 24, 1991— Applicant failing to take steps to obtain guidance from Court as to how to proceed in circumstances—Matter of “court delays” referred back despite infirmities of applicant’s arguments because Minister not considering applicant’s conduct or whether delays not caused by respondent could form basis of relief—Act, s. 169(1) permitting appeal to Tax Court of Canada where taxpayer filed notice of objection 90 days after service if not notified Minister vacated or confirmed assessment—Designed principally for situations where taxpayer owed money from Canadian government, not as mechanism to force Agency to issue assessments for taxes payable—S. 169(1) not lessening Minister’s obligation to assess with “all due dispatch”—Minister chose not to act without taxpayer’s consent—Minister not considering own failure to act in reaching decision to deny interest relief—Failure to consider material fact warranting Court interference, setting aside of Minister’s decision—Application allowed—Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 169(1), 220(3.1) (as enacted by S.C. 1994, c. 7, Sch. II, s. 181(1)).
Cole v. Canada (Attorney General) (T‑931‑04, 2005 fc 1445, Phelan J., order dated 25/10/05, 12 pp.)