Hughes – Tax Court of Canada prefers the more lenient French version of the repeated-failure-to-file penalty in s. 162(2) to the English version

One of the conditions for the application of the repeated-failure-to-file penalty of up to 50% under s. 162(2), contained in both the English and French versions, is that CRA have sent a demand under s. 150(2) to file a return for the year, whereas the French version contains an additional condition that the taxpayer have failed to file the return within the time limit specified in the demand. Jorré J found that the French version made more sense and, therefore, was to be preferred over the English version.

As the Crown had failed to advance evidence as to whether the taxpayer had filed a return within the demanded period, Jorré J found that the taxpayer was not subject to the penalty.

Neal Armstrong. Summaries of Hughes v. The Queen, 2017 TCC 95 under s. 162(2).