Précis: The two applicant corporations had each applied for a dividend refund pursuant to section 129 of the Income Tax Act (the “Act”). In each case CRA denied the refund on the basis that the necessary returns had not been filed within the period of three years from the end of the taxation year in question. The applicants argued that CRA’s failure to grant relief from the three year limitation period in section 129 of the Act was unreasonable and sought judicial review of that decision. The Crown argued that the Federal Court did not have jurisdiction to interpret the operation of section 129. The Crown argued that the Tax Court had exclusive jurisdiction of such questions. The Federal Court accepted the Crown’s argument on the dividend refunds. The Court however allowed, on consent, the applicants’ applications on the question of interest and penalties arising from the late filing of returns and referred the matters back to the Minister for fresh consideration by another delegate.
Binder Capital v. R. - FC: Federal Court rules it has no jurisdiction over application of section 129 of Income Tax ActREAD MORE »