The taxpayer reported $22,000 of income when his income was in fact $60,000. The Court affirmed that the Minister's decision not to waive the associated penalties was reasonable. Sharlow J.A. stated (at para. 8):
The amount of the penalty was approximately $7000, but the assessment that took into account the unreported income as well as the available credits resulted in less than a $200 change to Mr. Spence's net tax liability. We have no doubt that the Minister was aware of these facts. However, we are unable to say that the amount of the penalty, considered against all the relevant circumstances, is such a compelling factor in Mr. Spence's favour that it renders the Minister's decision unreasonable, particularly in light of the amount of the unreported income compared to Mr. Spence's total income.