A client asked our firm for advice after a GST/HST auditor proposed to apply $174,240 in gross-negligence penalties.
We provided the GST/HST auditor with a legal analysis showing that the auditor had misinterpreted the Excise Tax Act’s provisions on gross-negligence penalties. In response, the auditor rescinded the gross-negligence penalties.
The client avoided the $174,240 and the interest that would have accrued on that amount.
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