The applicant sought judicial review of a decision by the Minister of National Revenue's delegate refusing to cancel the tax imposed on excess amounts in his Tax Free Savings Account (TFSA) for the 2017 taxation year.
The applicant argued that the over-contribution was a result of erroneous information provided by the Canada Revenue Agency.
The Federal Court dismissed the application, finding the delegate's decision reasonable.
The Court noted that under subsection 207.06(1) of the Income Tax Act, cancellation requires both a reasonable error and the withdrawal of the excess amount without delay.
The applicant failed to satisfy the second condition, as he chose to leave a portion of the excess in the TFSA to avoid an economic loss.
