The applicant corporation sought judicial review of a decision by the Canada Revenue Agency (CRA), acting as agent for the Minister of Finance for Ontario, refusing to take further action under an intergovernmental Memorandum of Understanding (MOU) to resolve a double taxation issue with Revenu Québec.
The double taxation arose because the applicant filed inconsistent tax returns in Ontario and Quebec for the 2011 taxation year.
The Divisional Court dismissed the application, finding that the CRA's interpretation of the MOU—that it only applies when a tax authority proposes to change a taxpayer's allocation formula, not when the taxpayer files inconsistently—was reasonable.
The court also found no breach of procedural fairness.
