Federal appeal | Tax | Income tax | Administration and enforcement
Corporate taxpayer B failed to file returns due to its principal’s medical problems. B made voluntary disclosure but Minister denied claims for dividend refunds for the 2003 to 2011 taxation years. B applied for relief from Minister under discretionary taxpayer relief provisions in s. 220(2.1) and (3) of Income Tax Act. Minister denied request. B’s application for judicial review to Federal Court was dismissed for lack of jurisdiction and B appealed. Appeal allowed. Federal Court was incorrect in deciding that Tax Court had exclusive jurisdiction to decide questions involving interpretation of Act. No evidence that Minister gave any consideration to request for a waiver pursuant s. 220(2.1). No decision for court to review concerning waiver application. Application remitted to Minister. Section 220(3) gives Minister broad discretion to override strict filing requirements in other provisions. Where provision provides relief to taxpayers, such as s. 220(3), provision should be given effect unless quite clear that Parliament intended otherwise. Not clear that 1994 amendments made s. 220(3) of Act inapplicable to dividend refunds.
Bonnybrook Industrial Park Development Co. Ltd. v. Canada (National Revenue) (2018), 2018 CarswellNat 3731, 2018 FCA 136, David Stratas J.A., Judith M. Woods J.A., and D.G. Near J.A. (F.C.A.); reversed (2017), 2017 CarswellNat 3055, 2017 CarswellNat 6560, 2017 FC 642, 2017 CF 642, Douglas R. Campbell J. (F.C.).