By Canadian Press

Top court won’t hear Muslim charity’s appeal over suspension freeze refusal

Feb 2, 2023 | 11:53 AM

OTTAWA — The Supreme Court of Canada will not look at whether the suspension of a Muslim charity should have been put on hold while an administrative challenge of the penalty played out.

The Canada Revenue Agency levied a one-year suspension against Human Concern International in July 2021 following an audit by the revenue agency’s charities directorate that flagged concerns about six initiatives.

Ottawa-based HCI objected to the suspension through the revenue agency’s internal administrative appeal process.

At the same time, it applied to the federal Tax Court to delay application of the suspension until the revenue agency had considered the objection.

In August 2021, a Tax Court judge declined to grant a stay of the suspension.

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In a March 2022 decision, the Federal Court of Appeal upheld the judge’s ruling, saying HCI had not raised any error warranting intervention.

That prompted the charity to take its case to the Supreme Court.

HCI continued to pursue the legal right to a freeze even though the suspension ended last summer and the charity was able to resume issuing tax receipts to donors.

The group pressed on in court on the basis that the case had significant repercussions for the charitable sector as a whole.

In its application seeking a hearing in the Supreme Court, HCI said the rule of law in Canada would be “significantly diminished” if the court did not step in. 

The charity argued federal agencies would be empowered to impose penalties before an airing of the issues — and prior to a determination of guilt.

As usual, the Supreme Court gave no reasons for refusing to hear the case.

This report by The Canadian Press was first published Feb. 2, 2023.

The Canadian Press