Heather Thomas filed tax forms (T1135s) late for 2016 and 2017, incurring penalties and interest of about $6,000, assessed by the Canada Revenue Agency (CRA)??.
Thomas requested relief from the CRA, citing medical issues for herself and her husband. However, the CRA denied this request, stating that their medical situation did not prevent timely filing??.
A second request with additional medical information was also denied by the CRA??.
Legal Issues:
Relief from Penalties and Interest: The main issue was the CRA's decision to deny Thomas relief from penalties and interest due to late filing.
Consideration of Medical Circumstances: The case centered on whether the CRA officer's decision adequately considered Thomas's medical circumstances??.
Judgment:
Judge: Mr. Justice O'Reilly
Decision: The application for judicial review was allowed??.
Reasoning:
The judge found the CRA officer's decision unreasonable as it failed to properly consider Thomas's medical circumstances??.
New evidence was admitted, showing the CRA previously granted her relief for late GST filings and that the CRA’s late response contributed to her delayed filings??.
The judge noted inconsistencies in the CRA’s decisions and responses, including a failure to meaningfully respond to Thomas's medical evidence and an unreasonable finding that Thomas had not acted promptly??.
Conclusion:
The Federal Court's decision highlights the importance of administrative decision-makers adequately considering all relevant circumstances, including medical conditions, and the need for consistency in evaluating similar cases. The case underscores the value of thorough and reasoned decision-making in administrative proceedings.
