Doctrine of legitimate expectations only applied to procedure to be followed

Income Tax – Tax credits

Minister of Canadian Heritage refused taxpayer’s request for film or video production certificate for television series on grounds that production would be production in respect of game, questionnaire or contest under s. 1106(1)(b)(iii) of Income Tax Regulations. Canadian Audiovisual Products Certification Office (CAVCO) was unit within Department of Canadian Heritage that administered certificates . In absence of certificate, taxpayer could not obtain tax credit. Taxpayer brought application for judicial review . Application dismissed . Decision was reasonable. There was nothing in evidence to indicate that decision was not made in good faith, that it constituted abuse of power or that it was otherwise contrary to objectives of legislation. Architecture of legislative scheme required that Minister determine whether production was excluded, which was precisely what had been done. Evidence showed that CAVCO examined material submitted, matter was considered by compliance committee and decision was communicated to taxpayer in notice of refusal. Facts did not support conclusion that taxpayer was caught off guard and that CAVCO applied proposed changes to its guidelines retroactively. Doctrine of legitimate expectations was only procedural in nature and in this proceeding, there was no deadline, neither express nor implied, for process applications. Doctrine of legitimate expectations only applied to procedure to be followed and in this case, taxpayer was given notice of refusal as well as opportunity to make representations before Minister’s final decision. This was all that procedural fairness required.

Productions GFP (III) Inc. c. Canada (Procureure générale) (2019), 2019 CarswellNat 7890, 2019 CF 1613, William F. Pentney J. (F.C.).

Case Law is a weekly summary of notable civil and criminal court decisions by the Supreme Court of Canada, the Federal Court of Canada and all Ontario courts. These cases may be found online in WestlawNext Canada. To subscribe, please visit store.thomsonreuters.ca

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Benchers defend status quo for equity partners, decline to censure social media critics

Law society's 4-year plan: Avoid rules that are inappropriate or blown out of proportion

Ontario Court of Justice adds two new Justices of the Peace: Andres and Woods

Ombudsman calls out ‘sub-standard’ CRA for delays

All US law schools now use WestLaw Edge, says Thomson Reuters

Firm warns lawyers: Careful what you say using a rideshare

Most Read Articles

Law society could dismantle another equity provision, bencher says

Firm warns lawyers: Careful what you say using a rideshare

Lawyer allegedly tied to Vaughan Working Families ads

Law society's 4-year plan: Avoid rules that are inappropriate or blown out of proportion