In a January 30, 2015 Federal Court of Canada case (Robinson vs. CRA, T-1109-14), the taxpayer requested a Judicial Review of CRA’s Taxpayer Relief decision to waive all $28,000 of interest but not the associated $10,000 in penalties.

CRA cancelled all of the interest but did not waive penalties as the Applicant had not identified any circumstances that had prevented him from filing his income tax returns when they were due. In addition, the Court opined that he had not taken reasonable care in the conduct of his affairs and had knowingly allowed a balance to exist.

The Court concluded that CRA’s decision fell within a range of possible outcomes which are defensible in respect of the facts and law (Subsection 220(3.1)), and therefore, dismissed the Judicial Review application.

For further information see VTN Monthly Tax Update Seminar, Issue No. 404