Sood – Federal Court states that CRA is required to breach a settlement agreement that does not accord with tax law

When the taxpayer brought a Federal Court action to enforce an agreement with CRA for the settlement in his favour of a dispute respecting the new housing HST rebate, Gascon J found that he lacked the jurisdiction to consider the application (as it represented a "collateral attack on the validity of the tax reassessment" in question). After referring to the Galway and Cohen line of cases, he went on to state that "the Agency was required to revoke the settlement agreement since no legal or factual basis supports Mr. Sood’s claim to the provincial new housing rebate."

Neal Armstrong. Summaries of Sood v. M.N.R., 2015 FC 857 under s. 152(1) and Federal Court Act, s. 18.5.