Case information

Taxation — Income Tax Act — Claimed charitable donation tax credits reassessed by Minister — Lower courts dismissing appeals — Whether Federal Court of Appeal erred in giving deference to lower court in finding that a) cash donation to registered charity with a charitable receipt was not a valid gift; and b) split gifting rules operated to vitiate a valid gift — Whether Federal Court of Appeal’s decision enables courts to rely on judge-made law in their interpretation of matters that should fall within complete code of Act — Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.).

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The applicants participated in the Global Learning Gifting Initiative program (the “GLGI Program”). Each applicant received two receipts — one for the cash they paid and a second receipt for an alleged donation of educational courseware licences (the “Licenses”). They claimed charitable donation tax credits under the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.) based on both the cash paid and the transfer of the Licenses. The applicants were reassessed by the Minister of National Revenue to deny these tax credits. The issue before the Tax Court was whether the applicants should be allowed to claim charitable donation tax credits based on their cash payments.

The Tax Court dismissed their appeals from the reassessments. The Federal Court of Appeal dismissed the appeals.