The taxpayer settled an employment dispute with the Department of Justice, under which she was entitled to liquidated damages. The Department erroneously issued a T4 slip, and consequently CRA assessed the taxpayer on the basis that the liquidated damages were income from employment. The taxpayer neglected to file a notice of objection, but instead pursued the cancellation of the T4 slip. She applied to the Court for a declaration that the T4 was issued in error, and a writ of mandamus for the Minister to issue an amended T4.
Harrington J found that the taxpayer's application was an impermissible collateral attack on the Tax Court's jurisdiction, and he had no authority to make the requested order. He suggested, however, that it would be right for the Minister to acquiesce, as the T4 was clearly erroneous.