Triumphant Church of Christ Intl. v. The Queen (FCA) -quick revocation not denial of natural justice

May 28, 2009 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: Canadian Charity Law

This case deals with a church who lost its charitable status for lack of proper record keeping.  We learn from this case that because CRA moves quickly to revoke status does not mean that the “requirements of natural justice and procedural fairness” are not respected.  In this case the court found that the appellant was given several opportunities to respond to the concerns that CRA and they in their response did not satisfy CRA.

Date: 20090520
Docket: A-173-08
Citation: 2009 FCA 161

CORAM:    LINDEN J.A.
                SEXTON J.A.               
                SHARLOW J.A.

BETWEEN:

TRIUMPHANT CHURCH OF CHRIST INTERNATIONAL
Appellant

and

THE MINISTER OF NATIONAL REVENUE
Respondent


Heard at Toronto, Ontario, on May 20, 2009.

Judgment delivered from the Bench at Toronto, Ontario, on May 20, 2009.


REASONS FOR JUDGMENT OF THE COURT BY:                        SHARLOW J.A.

Date: 20090520
Docket: A-173-08
Citation: 2009 FCA 161

CORAM:    LINDEN J.A.
                SEXTON J.A.               
                SHARLOW J.A.

BETWEEN:

TRIUMPHANT CHURCH OF CHRIST INTERNATIONAL
Appellant


and

THE MINISTER OF NATIONAL REVENUE
Respondent


REASONS FOR JUDGMENT OF THE COURT

(Delivered from the Bench at Toronto, Ontario, on May 20, 2009)

SHARLOW J.A.

[1]          This appeal pursuant to section 172 of the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) challenges the decision of the Minister of National Revenue to issue a notice of intention to revoke the registration of the appellant church as a charitable organization. We have not been persuaded that there is any basis for reversing the Minister’s decision.

[2]          The appellant’s only argument is that the Minister failed to observe the requirements of natural justice and procedural fairness in that the audit and revocation process moved very quickly. Having reviewed the record and considered the submissions of counsel for the appellant, we cannot accept this argument. There is ample evidence that the appellant was made aware of the Minister’s concerns about the lack of proper record keeping, and that the appellant was given several opportunities to respond to those concerns. When the appellant did not give a satisfactory response, it was open to the Minister to conclude that the appellant had not complied its legal obligations as a registered charity and to determine that its registration should be revoked.

[3]          The appeal will be dismissed with costs.

“K. Sharlow”

J.A.


FEDERAL COURT OF APPEAL

NAMES OF COUNSEL AND SOLICITORS OF RECORD

DOCKET:                                    A-173-08

(APPEAL FROM A DECISION OF THE TAX AND CHARITIES APPEAL DIRECTORATE DATED 14-MAR-2008)

STYLE OF CAUSE:                          TRIUMPHANT CHURCH OF CHRIST

INTERNATIONAL v. THE MINISTER OF

NATIONAL REVENUE

PLACE OF HEARING:                      TORONTO, ONTARIO
DATE OF HEARING:                      MAY 20, 2009

REASONS FOR JUDGMENT

OF THE COURT BY:                        (LINDEN, SEXTON & SHARLOW JJ.A.)

DELIVERED FROM THE BENCH BY:  SHARLOW J.A.

APPEARANCES:

MAJEKODUNMI ADEGA                                  
FOR THE APPELLANT


JOANNA HILL
FOR THE RESPONDENT


SOLICITORS OF RECORD:

MAJEKODUNMI ADEGA
BARRISTER AND SOLICITOR
TORONTO, ON

FOR THE APPELLANT

John H. Sims, Q.C.
Deputy Attorney General of Canada
FOR THE RESPONDENT


Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario.  He can be contacted at or at 416-361-1982. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit http://www.canadiancharitylaw.ca or http://www.globalphilanthropy.ca

This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

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416.361.1982
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