Judicial Review of CRA Decisions: Federal Court Challenges
When administrative remedies are exhausted, Federal Court judicial review may be your final option. Learn about challenging CRA decisions through judicial review proceedings.
CRA Decision Beyond Appeal Rights?
When traditional appeal routes are exhausted or unavailable, judicial review in Federal Court may be your last resort. These complex proceedings require specialized knowledge and strategic legal representation.
Understanding Judicial Review
Judicial review is a legal process where the Federal Court examines whether a government decision-maker, such as the CRA, acted within their legal authority and followed proper procedures. Unlike appeals that examine the merits of a decision, judicial review focuses on the process, jurisdiction, and reasonableness of administrative decisions.
When Judicial Review May Be Available
Judicial review is typically available for CRA decisions that fall outside normal appeal processes or involve jurisdictional or procedural issues:
Administrative Decisions
- • Ministerial decisions under taxpayer relief
- • Penalty assessments beyond appeal rights
- • Collection actions and enforcement decisions
- • Information gathering requirement disputes
Procedural Issues
- • Breach of procedural fairness rights
- • Failure to follow statutory requirements
- • Constitutional or Charter violations
- • Jurisdictional overreach by CRA
Not a Substitute for Appeals
Judicial review is not a substitute for normal tax appeal processes. Courts will generally require that you exhaust available administrative remedies before seeking judicial review, unless exceptional circumstances exist.
Grounds for Judicial Review
Federal Court judicial review examines CRA decisions on several potential grounds:
Reasonableness
Whether the decision falls within the range of possible, acceptable outcomes defensible in respect of the facts and law.
Correctness
Applied to jurisdictional questions, constitutional issues, and questions of central importance to the legal system as a whole.
Procedural Fairness
Whether the CRA followed proper procedures and afforded you adequate opportunity to present your case and respond to evidence.
Jurisdictional Authority
Whether the CRA acted within its legal authority and statutory mandate when making the decision.
Common CRA Decisions Subject to Review
Several types of CRA decisions may be appropriate for judicial review:
- Refusal to grant taxpayer relief (penalty and interest cancellation)
- Decisions regarding voluntary disclosure program applications
- Information gathering requirements and compliance orders
- Collection enforcement actions exceeding statutory authority
- Refusal to accept security for payment of tax debts
- Decisions affecting Charter rights or constitutional issues
The Judicial Review Process
Judicial review proceedings in Federal Court follow specific procedures and timelines:
Step 1: Application for Leave (30 days)
- • File application for leave to commence judicial review
- • Demonstrate arguable case on grounds of review
- • Show decision is subject to judicial review
- • Pay required court fees
Step 2: Leave Decision
- • Court reviews application without oral hearing
- • Must meet threshold test for arguable case
- • CRA may file responding materials
- • Court grants or denies leave to proceed
Step 3: Judicial Review Hearing
- • Exchange of written arguments and evidence
- • Preparation of court record by CRA
- • Oral hearing before Federal Court judge
- • Court decision with written reasons
Strict Deadlines Apply
You have only 30 days from the decision or from becoming aware of the decision to file for judicial review. Missing this deadline means losing your right to challenge the decision. Extensions are rarely granted.
Remedies Available on Judicial Review
If successful, the Federal Court can grant various remedies:
Challenges and Limitations
Judicial review proceedings face several challenges and limitations:
High Threshold for Leave
Courts grant leave sparingly and only where there is an arguable case with reasonable prospects of success.
Deference to Administrative Decisions
Courts show significant deference to CRA expertise and will not substitute their judgment on technical tax matters.
Limited Scope of Review
Judicial review examines process and jurisdiction, not the merits of the underlying tax assessment or decision.
Cost Risks
Unsuccessful applicants may be ordered to pay the Crown's legal costs, which can be substantial.
Strategic Considerations
Successful judicial review requires careful strategic planning:
Challenge CRA Overreach in Federal Court
When the CRA exceeds its authority or violates your procedural rights, judicial review may be your only recourse. Our Federal Court litigation experts have successfully challenged CRA decisions and protected taxpayer rights in the highest courts.
Professional Representation Benefits
Judicial review requires specialized Federal Court expertise: