Cable / Telecom News

Federal Court denies Iristel request to delay CRA collection actions


Iristel to appeal the decision

By Denis Carmel

OTTAWA – In the long and protracted saga being played out between Iristel and the Canadian Revenue Agency (CRA), Iristel tried to stop the CRA from collecting what the agency feels Iristel owes it.

Cartt.ca has reported on this case throughout the year herehere and here.

“Iristel and the Minister of National Revenue have a number of ongoing disputes in this Court, the Tax Court of Canada and the Federal Court of Appeal relating to the Minister’s assessment of Iristel’s tax liability and the Minister’s conduct throughout the assessment and audit process,” reads Madam Justice Sadrehashemi’s decision.

Iristel had to demonstrate this is a serious issue, that it is not just a delaying tactic and the Court agreed with Iristel that it is. Iristel also had to prove that the collection actions could cause irreparable harm. “Iristel’s written submissions on irreparable harm are limited to the following: Iristel has adduced evidence in this Court that the Minister’s withholding of more than $79 000 000 in amounts due to Iristel causes irreparable harm. Taking the limited resources left in this controversy will end Iristel and endanger the more than 7 000 000 Canadians who rely on Iristel and its services.”

The judge said Iristel did not produce financial evidence that the CRA action would result in bankruptcy, and therefore denied its application.

In an email to Cartt.ca, Samer Bishay said Iristel is “appealing the decision as the judge made assumptions that was not on the record.”