Introduction: Taxpayer's Rights to Interest from the Canada
Revenue Agency ("CRA")
Under the Income Tax Act, RSC 1985, c 1 (5th Supp)
("ITA") 164(3) the CRA must refund interest at a
prescribed rate based on the amount in respect of a taxation year
that is refunded or repaid. All future statutory references are to
the ITA, unless specified otherwise
This case is about whether the CRA is obligated to provide
interest on a refund to Glatt ("Taxpayer"), who had been
assessed a penalty under the ITA's "planner"
provisions. The issue has not previously been litigated. The court
ultimately concluded the CRA's refusal to pay interest was
unreasonable and the CRA must calculate and remit the interest owed
to the Taxpayer.
