In response to a query respecting the Douglas decision, and as to whether CRA has considered providing administrative relief from the penalty outside the voluntary disclosure program, CRA stated (TaxInterpretations translation):
1. The CRA has considered the Douglas decision. However, that case proceeded under the informal procedure and on that basis, the CRA is not bound by that decision.
2. For the time being, having regard to the current legislation, the CRA is bound to apply the penalty provided in ITA subsection 162(7). No specific mechanism is provided to avoid the penalty.
Respecting the voluntary disclosure program, CRA stated (TaxInterpretations translation):
Each disclosure must satisfy these four conditions:
1. is voluntary, 2. is complete, 3. engages the imposition or potential imposition of a penalty, and 4. comprises information that is more than a year overdue.