A W Prociuk:—This appeal came on for hearing before the Board during the February sittings in Toronto, Ontario, which commenced on February 19; 1973. On that date the appellant appeared in person and complained that he experienced great difficulty in getting his assess- ments for the taxation years 1967 and 1968 straightened out in the District Income Tax Office. Learned counsel for the respondent advised the Board that the assessments were presently under review and discussions are being held between him, the appellant and a representative of the District Office with a view to having the matter settled. The case was therefore adjourned to February 26, 1973 to allow additional time for settlement. When the matter came up on that date, no settlement had been reached as the appellant had not had time to consider the latest proposal offered him by the respondent. The Board then reserved judgment with leave to each party to file such further material as they may see fit in the circumstances before April 30, 1973.
It appears to me that the main point in issue is the fact that the appellant is now being asked to pay interest on a reassessment. He had originally filed his return for the year 1967 and paid the amount of tax then calculated to be payable. The Department of National Revenue reassessed and refunded to the appellant a sum in excess of $2,000. A year later, more or less, the appellant was reassessed again and he was asked to pay the amount approximately the same as he had originally calculated plus accrued interest thereon. To this the appellant strongly objected on the ground that he should not be penalized by interest in the circumstances. It is obvious to me that someone in the respondent’s office made an error initially.
Accordingly, I would allow the appeal in part by disallowing all interest as calculated to be owing in respect of the 1967 and 1968 taxation years and refer the matter back to the respondent for reassessment and necessary adjustments.
Appeal allowed.