The CRA, after granting a previous request of the taxpayer for interest relief in respect of some of the taxation years in question, declined to grant relief in respect of interest on a gross penalty assessment (that at the time of the review was still before the courts) on the basis that the taxpayer could only reverse such interest through a successful appeal of the penalty assessment itself based on the appropriateness of the penalty.
As the CRA had thus committed an error by failing to consider that the interest on the penalty might be reversed on the basis of fairness considerations, the taxpayer's request for fairness review of such interest was returned to the Minister for reconsideration.