INCOME TAX |
Penalties |
Boudreault v. Canada (Customs and Revenue Agency)
T-535-01
2002 FCT 84, Blais J.
28/1/02
14 pp.
Application for judicial review of decision by Canada Customs and Revenue Agency rejecting plaintiff's application to waive interest pursuant to Income Tax Act, s. 220(3.1)-- Plaintiff salaried pharmacist who did not make installment payments--In February 1998 installment payment statement sent to plaintiff by defendant by mistake, telling her total installment payments made by her for 1997 amounted to $25,000--Plaintiff never attempted to contact representative of defendant to investigate validity of statement--In May 1998 defendant issued plaintiff refund amounting to $24,908.85--Plaintiff repaid defendant sum of $24,908.85 but not interest accumulated on said sum--Plaintiff sent defendant application to waive interest pursuant to Act, s. 220(3.1)-- Minister exercised discretionary authority in accordance with Act in decision made on March 21, 2001 rejecting application to waive interest made by plaintiff--Standard of judicial review applicable to discretionary decisions is patently unreasonable standard--Plaintiff did not have "clean hands" --By her actions she endangered her chances of getting discretionary adjustment under s. 220(3.1)--Guidelines in Information Circular IC92-2 do not have binding force and not binding on Minister in exercise of discretionary authority so as to exclude all other valid or relevant reasons for which he might exercise discretionary authority or refuse to do so-- Information Circular IC92-2 tool used as guide when administrative decision taken by defendant, but not binding on Minister--Minister's discretionary authority conferred by Act, s. 220(3.1) exercised in good faith in accordance with Information Circular IC92-2 and rules of natural justice-- Application dismissed--Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, s. 220(3.1) (as enacted by S.C. 1994, c. 7, Sch. II, s. 181).