The taxpayer appealed the Minister's decision to deny relief of interest on corporate tax, payroll deductions, and GST accounts. Phelan J. stated (at para. 11):
I can find nothing unreasonable in the Minister's decision. The factors were examined and a rational conclusion was reached on each:
- There was no causal connection between [director] Mr Dakha's injury and the failure to meet tax obligations as there was another director capable of meeting the fiscal obligations.
- The continuity of operations was a moot point as the corporation had ceased operations in 2008 for reasons other than pending tax liabilities.
- The corporation had not made a meaningful attempt to address the tax portion of the debt although Mr. Dakha certainly did.
- The corporation had not exercised reasonable care in conducting its tax affairs because it had past problems with compliance. The corporation had allowed penalties to accrue on its accounts since 2002.