May 2016 Alberta CPA Roundtable, Q.13

The Guindon decision noted (at para. 90) that the Minister’s factum suggested that the taxpayer relief provisions of s. 220(3.1) could be available to an individual assessed with a civil penalty. What impact does this have on the circumstances where a person who has engaged in culpable conduct is eligible for relief?

Before indicating that the position in IC07-1, paras. 37-38 - respecting relief from gross negligence penalties being available only in exceptional circumstances - would also apply to culpable conduct penalties, CRA stated:

CRA policies and procedures have not changed in light of the Guindon SCC decision. The taxpayer relief provisions of subsection 220(3.1) could be available to an individual assessed a civil penalty…including a third-party penalty.

Guindon noted that the Minister’s factum suggested that the taxpayer relief provisions of s. 220(3.1) could be available to an individual assessed with a civil penalty. Before indicating that the position in IC07-1, paras. 37-38 respecting relief from gross negligence penalties being available only in exceptional circumstances would also apply to culpable conduct penalties (which were at issue in Guindon), CRA stated:

CRA policies and procedures have not changed in light of the Guindon SCC decision. The taxpayer relief provisions of subsection 220(3.1) could be available to an individual assessed a civil penalty…including a third-party penalty.