Charity & NFP Law Bulletin No. 390.
On June 24, 2016, the Federal Court of Appeal (“FCA”) released its decision in the Credit Counselling Services of Atlantic Canada Inc. v Minister of National Revenue (“Credit Counselling”) case, which was heard on April 28, 2016. The issue being reviewed in this decision was whether the activities carried on by Credit Counselling Services of Atlantic Canada Inc. (the “Appellant”) “related to the ‘prevention of poverty’” could be classified as “charitable activities for the purposes of the Income Tax Act” (“ITA”). Ultimately, the FCA found that the prevention of poverty object and related activities carried on by the Appellant were not charitable at law and dismissed its appeal, upholding the decision of the Minister of National Revenue (“the Minister”) to confirm the annulment of the Appellant’s charitable registration. This case is also important because it provides some indication concerning how courts will assess an annulment of charitable registration, as opposed to a revocation, and on what standard of review they will base their decision. Here the FCA confirmed that the Notice of Annulment of Registration (the “Notice of Annulment”) issued to the Appellant by the Minister will be assessed by the same standards of review as a revocation of charitable registration.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 390