Muir – Federal Court finds that financial hardship references basic living requirements, not university tuition

In rejecting a submission that garnishing $720 per month from a taxpayer with annual income of over $100,000 and children in university produced financial hardship justifying interest relief under s. 220(3.1), Annis J stated:

[I]n many Canadian families, children are expected to finance their own university education as an investment which would be recovered in the future by the benefits of the knowledge and skills acquired by a higher education. … In any event, I agree with the CRA’s interpretation that financial hardship for an individual is financial suffering or lack of what is needed for basic living requirements, such as food, clothing, shelter and reasonable nonessentials.

Neal Armstrong. Summary of Muir v. MNR, 2016 FC 362 under s. 220(3.1).