[2012] 1 F.C.R. D-2
Income Tax
Penalties and Interest
Consolidated appeals from Federal Court decisions (2010 FC 892, 2010 FC 893, 2010 FC 894, 2010 FC 895, 2010 FC 897, 2010 FC 898) dismissing judicial reviews of decision by Minister of National Revenue refusing appellants taxpayer relief from penalties, interest under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 220(3.1)—Appellants’ financial representative late in filing forms declaring foreign property—Representative of view that Canada Revenue Agency (CRA) obtaining needed information from other sources—CRA finding appellants’ reason for non-compliance not falling within scenarios set out in information circular (IC07‑1), i.e. extraordinary circumstances beyond taxpayer’s control, actions of CRA, inability to pay—Minister only partly granting appellants’ request for relief—Federal Court finding Minister not fettering discretion, having array of material going beyond scenarios set out in IC07‑1, reaching reasonable conclusion—Issue whether Minister’s decision reasonable—Minister fettering discretion, not drawing upon s. 220(3.1) to guide discretion, looking exclusively to IC07‑1—Minister defining, limiting scope of discretion to circumstances set out in IC07‑1—Minister denying appellants relief because claims not fitting within IC07‑1 scenarios—Minister’s decision letter showing faulty understanding that Minister governed exclusively by IC07‑1—Minister obligated herein to disclose full, true bases for decision—Minister’s decision thus unreasonable—However, decision should not be set aside, returned to Minister for redetermination as no practical end served in doing so—Reason for appellants’ delay in filing forms not acceptable excuse or mitigating factor for non-compliance—Appellants’ contention that penalties should be reduced without merit—Appellants separate legal entities, taxpayers, each potentially subject to penalties, interest for non-compliance—Not possible for appellants to succeed if matter returned to Minister for re-determination—Appeals dismissed.
Stemijon Investments Ltd. v. Canada (Attorney General) (A-376-10, A-374-10, A-375-10, A-377-10, A-378-10, A-382-10, 2011 FCA 299, Stratas J.A., judgment dated October 26, 2011, 24 pp.)