INCOME TAX |
Penalties |
Robertson v. M.N.R.
T-1915-99
2001 FCT 876, Lemieux J.
13/8/01
10 pp.
Application for judicial review of MNR's decision (after review by two levels of fairness committee) pursuant to Act, s. 220(3.1) denying applicant's application for waiver of penalties and interest otherwise payable for 1993 to 1996 taxation years--Problem arising from fact upon retirement from law firm, required to include in income percentage of work in progress of partnership, although received no money from that work in progress--Issue whether respondent discharged duty to act fairly in declining to exercise discretion under Act, s. 220(3.1)--Application allowed--Court cannot interfere with MNR's decision unless reviewable error committed--Respondent breached duty of fairness when broke its own internal rules as to composition of second-level appeal panel (fairness committee), as one decision maker involved at both levels--In effect, person who decided waiver application at first level sat on appeal from own decision--Matter referred back for reconsideration at second level by persons not previously involved in matter, and applicant shall be given opportunity to make written submissions to address those points without prejudice to second-level fairness committee to grant him interview if deemed desirable--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 220(3.1) (as enacted by S.C. 1994, c. 7, Sch. II, s. 181(1); Sch. VIII, s. 127(2)).