Court rules CRA negligent in pursuing taxpayer

In a precedent-setting decision, the B.C. Supreme Court has ruled CRA has a duty of care to taxpayers, reports the Vancouver Sun.

From 1999 to 2005, CRA pursued Irvin Leroux over $800,000 in back-taxes it said he owed. Leroux contested the taxes, and as the case was heading to court, CRA admitted he didn’t owe the government anything. Leroux then sued CRA, alleging the ordeal cost him his health, and significant legal and accounting fees.

Read: Should clients file taxes if they’re bankrupt?

The court recently ruled CRA isn’t just working for the Minister of Revenue, but for the Canadian public, and it had treated Leroux negligently, says the Sun.

While the court didn’t agree with Leroux’s contention that his financial damages were caused directly by CRA’s negligence, the ruling clears the way for other taxpayers to make that type of case.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.