Rae – Federal Court refuses to certify a class action for CRA's delays in assessing returns claiming gifting tax shelter credits.

CRA has held in abeyance the processing of 2012 and 2013 tax returns which claimed tax credits from 12 mass-marketed gifting tax shelters (8 for 2012, and 4 for 2013).

The Federal Court declined to certify a class action, based on the failure of CRA to assess the affected 2013 returns with "due dispatch," given inter alia problems with the applicant's definition of the class and deficiencies in her litigation plan (re fees and notifications).

Even if the action had been certified, there presumably would be minimal damages if CRA ultimately denies the credits (e.g., based on the tax shelters, such as that for the applicant, using leveraged gifts – see Maréchaux).

Neal Armstrong. Summary of Rae v. MNR, 2015 FC 707, under Federal Court Rules, Rule 334.16(1).