Floyd Estate v. M.N.R.
T-3086-92
Dubé J.
30/9/93
6 pp.
Application for order setting aside M.N.R.'s denial of request for cancellation of interest-Applicant alleging Minister's decision made without regard to facts, i.e. interest levied primarily due to Minister's officers' error, and Minister not observing procedural fairness as interest due to Minister's processing delay-Applicant's clerk making error in arithmetic in determining total income for 1990-Not including annuity payments in calculation of total income on terminal income tax return, although information included and T-4RSP slips attached to return-Notice of assessment issued in September 1991-In October Minister acknowledging receipt of request for clearance certificate-Minister reviewing information and discovering error-Applicant so advised in December and reassessment issued in May, 1992 including $2,412.04 arrears interest-Income Tax Act, s. 220(3.1) permitting Minister to waive, cancel any interest, penalties payable-Application dismissed-Whether to waive interest otherwise payable within Minister's discretion-Minister not acting unfairly-Applicant given full opportunity to make representations-Minister's delegate exercising discretion having before him relevant facts on which to base decision, including internal guidelines stipulating cancellation or waiver of interest limited to circumstances beyond taxpayer's control-Original error committed by applicant's clerk, not by Minister's officers-Since Canadian income tax system based on self-assessment, Minister's officers should not be blamed for not detecting taxpayer's errors sooner-All steps taken within fairly reasonable time-Income Tax Act, S.C. 1970-71-72, c. 63, s. 220(3.1) (as enacted by S.C. 1991, c. 49, s. 181)-Federal Court Act, R.S.C., 1985, c. F-7, s. 18.1 (as enacted by S.C. 1990, s. 8, s. 5).