A corporation withholds tax from a dividend that it pays to a non-resident and then fails to remit the amount withheld. The CRA later sends a letter to a shareholder of a shareholder of the dividend payor asking for information about a share sale. The payor then makes a voluntary disclosure in which it pays the amount withheld plus interest but asks for relief from penalties, which the Minister rejects on the basis that the CRA had already commenced an audit. The Federal Court found the decision to be unreasonable and referred the matter back to the Minister for a new decision. Amour International Mines d’Or Ltée v. Canada (Attorney General), 2010 FC 1070.
