Requirement for CRA to Assess Tax Shelters with Due Dispatch Confirmed by Federal Court

In McNally v. Canada (National Revenue) (2015 FC 767), a case where CRA did not assess a donation tax shelter T1 tax return, the Federal Court allowed the taxpayer’s application and ordered CRA to issue a Notice of Assessment within 30 days. This confirms the previous Federal Court decision in Ficek v Canada (Attorney General) (2013 FC 502) that found that the Minister had failed to assess the taxpayer’s return “with all due dispatch as required under subsection 152(1) of the Income Tax Act. The practical result should be that the inventory of unprocessed T1 tax returns held in abeyance by CRA should now be processed and assessed