ARTICLE · 03 AUGUST 2026

Remedies Constrained In Judicial Review

Millar Kreklewetz

A recent Federal Court decision highlights the limitations taxpayers face when seeking judicial review of Canada Revenue Agency decisions. Even when the CRA acknowledges its decision was unreasonable, courts typically remit matters back for redetermination rather than substituting their own judgment or granting additional relief.

CanadaTax

Robert Kreklewetz

David West

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An application for Judicial Review (“JR Application”) in the Federal Court can be an important tool for taxpayers to challenge decisions by the Canada Revenue Agency (“CRA”) that appear unreasonable, including decisions denying interest and penalty relief.

However, the recent Federal Court of Canada decision demonstrates that obtaining relief beyond the usual remedy of remitting the matter back for a redetermination (i.e., a new decision) remains difficult, even where the CRA agrees that its own decision was unreasonable.

LG Electronics Case

In LG Electronics Canada Inc. v. Attorney General of Canada, 2026 FC 895 [LG Canada], LG Electronics (the “Applicant”) applied to the CRA’s advance pricing arrangement program (the “APA”) to address inter-company transactions between the Applicant and its South Korean (“SK”) parent company. The APA involved both the Minister of National Revenue (the “Minister”) and a bilateral APA (“BAPA”) with tax

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Remedies Constrained In Judicial Review

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