The Sheldon M. Chumir Foundation, a registered charity, received a notice from the Minister of National Revenue regarding the intention to revoke its charitable status under subsection 168(1) of the Income Tax Act (ITA).
The Foundation sought a court order to prevent the publication of the revocation notice in the Canada Gazette until it had fully exercised its rights of objection under the ITA.
Legal Test Applied:
The Foundation needed to satisfy a conjunctive tripartite test for a stay or interlocutory injunction:
Serious Issue to be Determined: There was agreement that a serious issue was present.
Irreparable Harm: The Foundation claimed potential harm to its reputation, funding, and third-party relationships if the notice was published.
Balance of Convenience: Not assessed due to failure on the irreparable harm criterion.
Court Findings:
The Court concluded that the Foundation did not provide sufficient evidence of irreparable harm; its claims were deemed general and speculative.
As the Foundation did not meet all three criteria, particularly failing to prove irreparable harm, the request for an order was denied.
Outcome:
The application was dismissed with costs awarded to the respondent in the amount of $5,000.
