CRA Duty Assess With All Due Dispatch

On Nov 6, 2015 the Federal Court of Appeal dismissed the CRA appeal in MNR v McNally 2015 FCA 248 in a unanimous decision. Mr. McNally was successful in requiring CRA to assess his return. CRA had refused to do soon the basis that he had participated in a tax shelter. The Court of appeal repeated that the CRA's policy of delaying tax returns in order to deter taxpayers was not a valid policy under the law. Revenue Canada admitted that the main reason Mr. McNally's return (like other Canadian taxpayers in the same situation) had not been assessed was to discourage participation in Canadian income tax shelters. Mr. McNally's Canadian income tax lawyer brought a mandamus application in the Federal Court of Canada to require the Canadian tax department to assess that return. The Federal Court of Canada at 2015 FC 767 ruled in the taxpayer's favour in June 2015 that CRA's duty to provide an income tax assessment with due dispatch under section 152(1) of the Canadian Income