The taxpayer appealed an assessment which entailed gross negligence penalties under s. 163(2). CRA sent the taxpayer a notice of confirmation which neglected to address the taxpayer's complaint about the s. 163(2) penalties. After some further correspondence, CRA indicated that its confirmation applied to the s. 163(2) penalties, and sent the taxpayer a revised notice, back-dated to match the original noticee, which clarified this point.
Blanchard J. found that the amended, back-dated notice only served to clarify the original notice of confirmation (para. 21), and did not replace it. He stated (at para. 19):
In my view, once the Minister decides to confirm an assessment or reassessment and notifies the taxpayer in writing of his decision pursuant to subsection 165(3) of the ITA, his duties under the ITA in relation to reconsideration of assessments are completed. ... The [original notice of confirmation] is the only effective notice of the Minister's action in the circumstances. Any revised notice or amended notice that does not change the Minister's decision cannot be considered a substitute for the Notice of Confirmation.