Docket: A-338-11
Citation:
2012 FCA 281
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CORAM:
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NADON J.A.
GAUTHIER J.A.
TRUDEL J.A.
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BETWEEN:
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PAVAGE ST-EUSTACHE
LTÉE
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Appellant
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and
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ATTORNEY
GENERAL OF CANADA
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Respondent
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REASONS FOR JUDGMENT OF THE COURT
(Delivered from the Bench at Montréal, Quebec, on
February 5, 2018).
NADON J.A.
[1]
This is an appeal from a decision by the Federal
Court dated August 21, 2011, 2011 FC 1014, which dismissed the appellant's
application for judicial review that was filed regarding a decision by the
Canada Revenue Agency (the “Agency”). More specifically, the Agency dismissed
the application for interest relief submitted by the appellant under subsection
220(3.1) of the Income Tax Act.
[2]
The reasons for this decision by the Agency are
found in a letter dated February 2, 2010, sent by Ms. Francine Laporte, Team
Leader, Revenue Collections, Montréal Tax Services Office, Canada Revenue
Agency, to counsel for the appellant.
[3]
First, according to Ms. Laporte, the application
for interest relief was statute-barred. Second, due to paragraph 18 of an
agreement entered into between the parties on November 25, 2002 (“the
agreement”), Ms. Laporte said that she believed that the appellant had waived
its right to appeal and its right to file a fairness claim.
[4]
We are all of the opinion that we must intervene
in this case. With regard to the issue of limitation, the parties agree—indeed,
that is what the Federal Court also decided—that in the light of our decision
in Bozzer v. Canada (Minister of Revenue), on June 2, 2011, 2011 FCA
186, the appellant’s application for interest relief is not statute-barred. As
for paragraph 18 of the agreement, in our opinion, Ms. Laporte could not
conclude as she did without considering the agreement as a whole; more
specifically, paragraphs 8 and 23 of that agreement.
[5]
Before concluding, we note that the parties
agree that the appellant may file, it is so desires, an application under
subsection 152(4.2) of the Act with the understanding that the first date on
which the appellant learned of the assessment that is the source of this
dispute, and its interest, is May 26, 2004.
[6]
For these reasons, the appeal will be allowed,
the Federal Court’s decision will be set aside, the application for judicial
review will be allowed, and the case will be returned to the Agency for
reconsideration of the application for interest relief in the light of the
entire file and the agreement.
"M Nadon"
Certified true translation
François Brunet, Revisor
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