The taxpayer failed to withhold income tax on a bonus it paid to its president, but caught the error 11 days later without any CRA involvement. The Minister's decision not to waive penalties was based chiefly on "the company's failure to quickly remedy the error." Mandamin J stated (at para. 40):
It is not clear which "error" the Director was referring to in his decision, nor how the Applicant failed to remedy the error, regardless of whether the error was the failure to remit or to address payment of the final penalty amount. The evidence supports the Applicant's claim that it quickly remedied its failure to remit the amount due and that it took steps to address the penalty owed as a result of the assessment.
The Minister's decision therefore was not justified, transparent and intelligible, and was sent back for redetermination.