INCOME TAX |
Penalties |
Canada (Attorney General) v. Simard
A-404-02
2003 FCA 427, Noël J.A.
14/11/03
5 pp.
Application for judicial review of Tax Court of Canada (T.C.C.) decision reducing penalty incurred by respondent under Income Tax Act, s. 163(2) and reducing interest levied on penalty accordingly--Respondent knowingly participated in scheme organized by certain employees of Canada Customs and Revenue Agency, inserting false information in Agency's computer system, thereby granting unauthorized tax credit and deductions--Respondent thus obtained credit for married persons and dependants and deductions for maintenance when had never been married and had never had children-- However, Court reduced amount of penalty based on applicant's ability to pay--Application allowed--S. 163(2) confering no discretion on Minister or Court as to amount of penalty or interest--T.C.C. could neither reduce penalties nor interest levied on those penalties--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 163(2) (as am. by S.C. 1998, c. 19, s. 189).