LG Electronics – Federal Court allows taxpayer to make additional submissions to CRA in addition to the usual remedy for a successful judicial review of an interest-waiver decision

In November 2018, the Minister reassessed the Canadian taxpayer to give effect to a bilateral advanced pricing agreement (APA) between Canada and South Korea respecting sales of goods between the taxpayer’s South Korean parent and it.

In February 2017, the taxpayer applied for interest and penalty relief relating to the APA program, and in November 2019 requested such relief respecting alleged errors in processing advance payments made to CRA. The parties agreed that a CRA decision to grant only limited relief was based on inaccurate findings of fact.

D’Agostino J found no basis to depart from the usual remedy of remitting the matter back to CRA for reconsideration by a different decision-maker, other than to allow the taxpayer to provide further submissions to CRA within 30 days to address errors that it became aware of following receipt of the certified tribunal record.

She denied two further requested forms of relief having regard inter alia to "the distinct roles of the decision-maker and the reviewing court": (i) this did not constitute an exceptional situation where (as submitted by the taxpayer) CRA should be directed to provide its new decision-maker with a corrected set of facts as drafted by the taxpayer (and disputed, in part, by the Crown); and (ii) the taxpayer had not provided clear evidence and jurisprudence supporting its proposal that the new CRA decision be required to be made within 30 days.

Neal Armstrong. Summary of LG Electronics Canada Inc. v. Canada (Attorney General), 2026 FC 895 under s. 220(3.1).