Barbados Trust Cannot Side-Step Normal Tax Appeal Process

In Canada (National Revenue) v. Morris, the Minister of National Revenue appealed a Federal Court judgment requiring it to provide the RCI Trust, a Barbados settled trust, with a written decision on whether shares sold by the trust in 2006 were treaty exempt property under the Canada-Barbados Income Tax Convention. The RCI Trust obtained the judgment on an application for judicial review of the Minister's refusal to provide administrative relief and issue a compliance certificate under section 116 of the Income Tax Act (Canada). Section 116 imposes reporting and withholding obligations on non-residents' dispositions of certain taxable Canadian property. Under the Minister's published administrative policy, relief would generally be provided where a non-resident claimed a treaty exemption and provided specified documentation. The RCI Trust maintained that it had satisfied the conditions of the administrative policy and the Federal Court agreed with this position in its