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Published: January 11, 2022

Last Updated: October 21, 2022

Case issue

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 In response, the auditor rescinded the gross-negligence penalties.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.


"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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