Towers v. Canada
T-706-93
Noël J.
17/11/93
6 pp.
Application for judicial review of decision by Revenue Canada Taxation declining to exercise discretion in favour of applicant under Income Tax Act, s. 220(3.1) -- Applicant claiming business losses for 1985, 1986, 1987 taxation years -- Losses disallowed by MNR as found not to exist -- Arrears of interest on additional tax imposed on applicant amounting to $51,987.85 for years in issue -- Request to have arrears of interest cancelled under s. 220(3.1) twice refused -- Whether MNR acted in accordance with rules of natural justice and procedural fairness in not exercising discretion in favour of applicant under s. 220(3.1) -- S. 220(3.1) vesting new power in Minister, previously beyond jurisdiction and that of Court -- No particular duty of fairness prescribed for Minister under Act -- Fairness Committee, Chief of Appeals concluding applicant's situation not falling within ambit of fairness provisions -- Applicant showing lack of prudence, could have prevented cumulation of interest on outstanding tax liability-Applicant's situation not entirely result of extraneous circumstances -- No evidence suggesting Minister did not fulfil duty to act fairly or ignored relevant evidence -- Application dismissed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 220(3.1) (as enacted by S.C. 1991, c. 49, s. 181(1)).