Typically, the conduct of the CRA has little impact on Canadians' tax payable. If, say, an auditor overestimated a taxpayers' income, the Courts and appeals expect taxpayers to respond by demonstrating that they earned less income in the year, not merely that the auditor's process was flawed. However, in limited circumstances, CRA procedures may be subject to judicial review, whereby unfair procedures or unreasonable decisions can be overturned in the Federal Court. This primarily applies to discretionary decision involving interest relief and similar programs, but can extend to collections action and some unusual circumstances where an appeal to the Tax Court of Canada is not available. For minor issues and disputes for CRA personnel, one can file a "service-related complaint", formally notifying the CRA of improper conduct.
Judicial Review is a broad legal remedy whereby Canadian superior courts review the conduct or decisions of government officials to determine whether they have acted within the directionary mandate prescribed by legislation. In the tax context, reviewable discretion is somewhat unusual. Judicial Review of most decisions consists of a review of the "reasonableness" of a discretionary decision, but can also extend to whether it was conducted fairly or sufficiently quickly.
In the tax context, relief may be able via judicial review where the government refuses to assess a tax return, denies a request to waive interest without regard to the record or in a discriminatory fashion, or where the government allows its agents to improperly treat administrative guidelines as binding. It is not available where a taxpayer disagrees with the result of an audit or objection.
