| Citation: |
Slau Ltd. v. Canada (Revenue Agency), 2009 FCA 270, [2009] 4 F.C.R. D-12 |
A-560-08 |
Income tax
Penalties
Appeal from decision of Federal Court (2008 FC 1142) setting aside decision of M.N.R. refusing request under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 220(3.1) to cancel certain interest, penalties payable by respondent (Slau Limited) with respect to 1988–1990 taxation years—Respondent reassessed as result of 1992 audit—Reaching settlement agreement with Canada Revenue Agency (CRA) in 1996—In furtherance of settlement, respondent filing revised financial statements in which carrybacks of certain amounts of non-capital losses specified (loss carrybacks)—Notices of reassessment issued by CRA not implementing loss carrybacks—Effect of M.N.R.’s failure to implement respondent’s loss carrybacks clear, resulting in interest accrual—Application judge making no error in holding that M.N.R.’s refusal to cancel post-December 1, 1996 accrued interest unreasonable, but erring by imposing single mandated outcome upon M.N.R.—Appeal allowed.
Slau Ltd. v. Canada (Revenue Agency) (A-560-08, 2009 FCA 270, Ryer J.A., judgment dated September 22, 2009, 15 pp.)