Hajar Properties Inc. sought judicial review of a Canada Revenue Agency (CRA) decision that denied its request for taxpayer relief. The relief was sought to waive $8,783.14 in penalties and interest imposed due to late filing of the 2018 corporate tax return.
The company argued that the late filing was not its fault, as the documents were given to its accountant well before the deadline, but the accountant failed to file the return on time due to relocating his office.
Legal Issues:
Taxpayer Relief Request: Assessing whether the CRA's denial of relief from penalties and interest was reasonable.
Responsibility for Third-Party Delays: Whether the company could be held responsible for the delay caused by its accountant.
Judgment:
Judge: The Honourable Madam Justice Turley
Decision: Application for judicial review dismissed.
Reasoning:
The Court found the CRA’s decision to deny relief reasonable. Taxpayers are ultimately responsible for ensuring their tax returns are filed on time.
The Court did not consider the accountant's relocation as an extraordinary circumstance that prevented the timely filing of the tax return.
The company failed to follow up with the accountant to ensure timely filing and only did so three months after the deadline had passed.
Costs: No costs were awarded to either party.
Conclusion:
The Federal Court upheld the CRA's decision, emphasizing the taxpayer's responsibility to ensure timely filing of tax returns, even when employing third-party services like accountants. The case highlights the importance of due diligence and oversight in fulfilling tax obligations.
