Montgomery v. M.N.R.
T-2818-93
Pinard J.
2/5/94
6 pp.
Application for judicial review of decision denying applicants' request for waiver of interest -- Applicants seeking writ of certiorari quashing MNR's decision and order to review request for waiver of interest on basis Income Tax Act, s. 220(3.1) applicable in respect of interest accruing and payable in 1985 and subsequent taxation years -- MNR denied applicants' request on ground interest arising on debt originating from assessment with respect to 1984 taxation year cannot be waived pursuant to s. 220(3.1) -- Whether respondent correctly interpreted s. 220(3.1) when decided applying only to interest and penalties arising from assessments of tax for 1985 and subsequent taxation years -- S. 220(3.1) containing no limitation as to over what period MNR's discretion can be exercised; restriction contained in Act to Amend Income Tax Act, s. 127(5) -- Interpretation of statute requiring consideration of distinct elements: (1) words; (2) immediate context; (3) purpose of statute as manifested throughout legislation; (4) extrinsic evidence of parliamentary intent to extent admissible -- Greater weight to be given to clear words supported by immediate context than to larger assertions of parliamentary intention -- Words should be given ordinary meaning unless context requiring otherwise -- Taxation year referring to year, fiscal or calendar, for which tax computed -- Parliament's intent to limit MNR's discretion to waive interest payable on returns filed for 1985 taxation year and for subsequent taxation years -- Not enough reasonable uncertainty or factual ambiguity resulting from lack of expliciteness to decide in favour of taxpayers -- Application dismissed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 220(3.1) (as enacted by S.C. 1991, c. 49, s. 181(1)) -- An Act to Amend the Income Tax Act, S.C. 1993, c. 24, s. 127(5).