Prescient Foundation v. Minister of National Revenue, (2013) 444 N.R. 234 (FCA)

• Judge: Pelletier, Gauthier and Mainville, JJ.A.
• Court: Federal Court of Appeal (Canada)
• Case Date: March 20, 2013
• Jurisdiction: Canada (Federal)
• Citations: (2013), 444 N.R. 234 (FCA);2013 FCA 120

Prescient Fdn. v. MNR (2013), 444 N.R. 234 (FCA)

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[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

Temp. Cite: [2013] N.R. TBEd. MY.013

Prescient Foundation (appellant) v. Minister of National Revenue (respondent)

(A-310-12; 2013 FCA 120; 2013 CAF 120)

Indexed As: Prescient Foundation v. Minister of National Revenue

Federal Court of Appeal

Pelletier, Gauthier and Mainville, JJ.A.

May 1, 2013.

Summary:

The Minister of National Revenue proposed to revoke the registration of Prescient Foundation as a charity (Income Tax Act, ss. 149.1 and 168(1)). Prescient appealed.

The Federal Court of Appeal dismissed the appeal.

Income Tax - Topic 7533

Exemptions - Particular exemptions - Charitable organizations and foundations - The Minister of National Revenue proposed to revoke the registration of Prescient Foundation as a charity (ss. 149.1 and 168(1)) on the grounds that: (a) it participated in a tax planning arrangement for the private benefit of others; (b) it transferred an amount of $574,000 for a share purchase that was in fact a non-charitable gift to a non-qualified donee arising from the tax planning arrangement; (c) it made a gift to a non-qualified donee in the form of a $500,000 transfer to a non-profit organization in the United States; and (d) it failed to maintain adequate books and records - Prescient appealed - The Federal Court of Appeal dismissed the appeal.

Income Tax - Topic 7533

Exemptions - Particular exemptions - Charitable organizations and foundations - The Federal Court of Appeal discussed the standard of review on an appeal from a decision by the Minister of National Revenue to confirm a proposal to revoke a registration of a charity - See paragraphs 11 to 14.

Income Tax - Topic 8002

Returns, assessments, payment and appeals - Appeals to court - General - Standard and scope of review - [See second Income Tax - Topic 7533 ].

Cases Noticed:

Action by Christians for the Abolition of Torture v. Canada (2002), 302 N.R. 109; 2002 FCA 499, refd to. [para. 12].

Sheldon Inwentash and Lynn Factor Charitable Foundation v. Minister of National Revenue (2012), 432 N.R. 338; 2012 D.T.C. 5090; 2012 FCA 136, refd to. [para. 12].

World Job and Food Bank Inc. v. Minister of National Revenue, [2013] N.R. Uned. 39; 2013 FCA 65, refd to. [para. 12].

Hostelling International Canada - Ontario East Region v. Minister of National Revenue, [2009] 2 C.T.C. 89; 384 N.R. 144; 2008 FCA 396, refd to. [para. 12].

House of Holy God v. Canada (Attorney General) (2009), 393 N.R. 65; 2009 FCA 148, refd to. [para. 12].

Georgia Strait Alliance et al. v. Canada (Minister of Fisheries and Oceans) et al. (2012), 427 N.R. 110; 2012 FCA 40, refd to. [para. 13].

Canada (Minister of Fisheries and Oceans) v. David Suzuki Foundation et al. - see Georgia Strait Alliance et al. v. Canada (Minister of Fisheries and Oceans) et al.

Takeda Canada Inc. v. Canada (Minister of Health) et al. (2013), 440 N.R. 346; 2013 FCA 13, refd to. [para. 13].

Celgene Inc. v. Canada (Minister of Health) (2013), 443 N.R. 96; 2013 FCA 43, refd to. [para. 13].

Vancouver Society of Immigrant and Visible Minority Women v. Minister of National Revenue, [1999] 1 S.C.R. 10; 234 N.R. 249, refd to. [para. 25].

Levy Estate, Re (1989), 68 O.R.(2d) 385, refd to. [para. 25].

Edwards v. Minister of National Revenue (2013), 443 N.R. 352; 2012 FCA 330; 2013 DTC 5028, refd to. [para. 31].

R. v. E Littler Sr., [1978] C.T.C. 235, 78 D.T.C. 6178 (F.C.A.), refd to. [para. 41].

New Brunswick (Board of Management) v. Dunsmuir, [2008] 1 S.C.R. 190; 372 N.R. 1; 329 N.B.R.(2d) 1; 844 A.P.R. 1; 2008 SCC 9, refd to. [para. 49].

Statutes Noticed:

Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, sect. 149.1(3), sect. 168(1) [para. 18]; sect. 230(2) [para. 45].

Authors and Works Noticed:

Drache, Hayhoe, and Stevens, Charities Taxation, Policy and Practice, (2007), sect. 12.2.2 [para. 27].

Hayhoe, A Critical Description of the Canadian Tax Treatment of Cross-Border Charitable Giving and Activities, (2001) 49 Canadian Tax Journal 320, pp. 331, 332 [para. 27].

Sherman, David M., Practitioner's Income Tax Act (43rd Ed. 2013), p. 1260 [para. 27].

Counsel:

Gib van Ert and Andrea Glen, for the appellant;

Lynn M. Burch and Selena Sit, for the respondent.

Solicitors of Record:

Hunter Litigation Chambers, Vancouver, British Columbia, for the appellant;

William F. Pentney, Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard on March 20, 2013, in Vancouver, B.C., by Pelletier, Gauthier and Mainville, JJ.A., of the Federal Court of Appeal. The following decision was delivered in Ottawa, Ontario, on May 1, 2013, for the court, by Mainville, J.A.