Taxpayer Relief At Objection Stage: Asare v R

Subsection 220(3.1) of the Income Tax Act (Canada)¹ grants the Canada Revenue Agency ("CRA") the discretion to waive or cancel penalties and interest. While this provision is the legislative authority for the CRA's taxpayer relief and voluntary disclosures programs, its scope and operation are broader than the relief those programs grant pursuant to the CRA's administrative guidelines. That said, administrative guidance is generally relied upon to ensure consistent results and to assist decision-makers in considering relevant factors, although slavish adherence to administrative policy constitutes an improper fettering of discretion.

The CRA's administrative policy regarding taxpayer relief while notices of objection or appeals are pending includes certain limitations. More specifically, the CRA will review and consider relief requests on the bases of extraordinary circumstances or CRA actions while objections or appeals are in progress, and may communicate an