Canadian Tax Focus, Volume 10, Number 4, November 2020
Until recently, when a charity challenged its revocation at the FCA, the charity had to prove that the CRA’s decision to revoke was unreasonable. It now appears that the charity must prove that the CRA committed a palpable and overriding error (Ark Angel Fund v. Canada (National Revenue), 2020 FCA 99). In other words, the threshold the charity had to meet was high before, and is now even higher. The more appropriate standard to apply for revocations is that used for decades in the TCC, described below. Both types of tax appeals should be subject to a common standard.