To read the full article, click here: 
Can the Canada Revenue Agency's discretion be held to task if it's not exercised reasonably? That was the subject in a case (McNaught Pontiac Buick Cadillac Ltd. v. Canada, 2006 FC 1296) decided in October when a taxpayer asked for a judicial review of the CRA's decision to deny his fairness request for waiver of a $10,000 income tax penalty.
The taxpayer, a Winnipeg car dealership, is considered for income tax purposes to be a "large employer". As a result, under the Income Tax Act it is required to remit its payroll source withholding tax deductions to the CRA through a financial institution. On Sept. 20, 2005, McNaught was required to remit $105,386 in payroll taxes.