Federal appeal | Tax | Income tax | Special rules
Charity operated Islamic school that offered classes from junior kindergarten to grade eight. Registration of school as charity provided it with significant advantage of being able to offer tax incentive to donors. Charities Directorate of Canada Revenue Agency conducted audit of charity’s books and records for 2009 and 2010 and concluded that charity was in serious non-compliance with statutory requirements. Minister of National Revenue advised charity that she would revoke registration as charity under Income Tax Act after 30 days by publishing copy of notice of intention to revoke in Canada Gazette. Charity commenced application seeking order prohibiting publication of copy of notice of intent to revoke until later of 30 days after Minister disposed of charity’s objection to notice or June 30, 2018. Application dismissed. Test to be applied in considering charity’s application to extend period for publication of notice of intention to revoke was test for granting stay or injunction set out by Supreme Court of Canada in 1994 decision. First part of test was made out. Evidence fell well short of establishing irreparable harm and failed second part of test. Evidence charity put forward to support chain of events leading to irreparable harm did not meet required standard. There was no need to consider third part of test.
Ahlul-Bayt Centre, Ottawa v. Canada (National Revenue) (2018), 2018 CarswellNat 1156, 2018 FCA 61, Rennie J.A., Woods J.A., and John B. Laskin J.A. (F.C.A.).