Federal Court


Income tax

Administration and enforcement

Minister of National Revenue not having general discretionary power to not assess taxes

Taxpayer’s representatives did not take necessary steps to dissolve corporation or remove her as director, despite her instructions to do so. More than two years later, Canada Revenue Agency (CRA) sent director’s liability assessments to taxpayer. Taxpayer did not respond to CRA for two years. Delegate of CRA refused to exercise discretion to not enforce assessment issued against taxpayer because objection had not been filed within 90 days. Taxpayer brought application for judicial review of decision. Application dismissed. Federal Court did not have jurisdiction over matter. Section 227(10) of Income Tax Act did not grant Minister of National Revenue general discretionary power to not assess taxes, nor did it grant discretion to vacate or reconsider assessments. Application was attack on validity of assessments. Taxpayer failed to avail herself within requisite timeframe of objection and appeal procedures that were available to her. Objection and appeal procedures in Act constituted complete appeal procedure. Taxpayer could not argue that failure to consider notice of objection that was not filed on timely basis took matter out of statutory scheme in Act and out of expertise of Tax Court of Canada.

Newton v. Canada (National Revenue) (2018), 2018 CarswellNat 1221, 2018 CarswellNat 1443, 2018 FC 343, 2018 CF 343, Michael D. Manson J. (F.C.).

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