McNally – Federal Court finds that CRA’s program, of delaying assessments of returns claiming leveraged donation credits, is illegal

CRA sent a letter to the taxpayer, along with other participants in various leveraged donation tax shelters, stating that his return would not be assessed until the tax shelter was audited - unless he withdrew his donation claim. CRA admitted that the main reason was "to discourage participation in these tax shelters."

Harrington J has ordered CRA to assess the taxpayer's return within 30 days, stating that it was "plain and obvious that Mr. McNally's rights have been trampled upon for extraneous purposes."

Neal Armstrong.  Summary of McNally v. MNR, 2015 FC 767 under s. 152(1).