Cloth participated in a leveraged donation scheme with the John McKellar Charitable Foundation.
The Canada Revenue Agency (CRA) denied tax credits for pre-December 20, 2002 donations.
Cloth requested a remission of taxes and interest.
Legal Issues:
Remission Request Validity: Whether the Minister's decision not to recommend remission was reasonable.
Equitability Concerns: Cloth claimed unfair treatment based on the timing of donations.
Judgment:
Judge: Madam Justice Kane
Decision: Application for judicial review dismissed.
Rationale:
The Minister's decision was justified and reasonable.
Acknowledged that remission orders based on claims that the law supported the applicants' positions could undermine the tax appeal system.
Costs: Cloth ordered to pay $4,420.
Conclusion:
The court upheld the Minister's decision, focusing on the discretionary nature of remission orders and the importance of maintaining legal consistency and public interest in tax assessment and appeal processes.
