G. S. v. City of Mississauga, 2017 CanLII 32656

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: May 25, 2017

FILE NO.: WR 144342

Assessed Person(s): A. S.

Applicant(s): G. S.

Respondent(s): City of Mississauga

Property Location(s): Withheld

Municipality(ies): City of Mississauga

Roll Number(s): Withheld

Application Number(s): 3181357

Taxation Year(s): 2014

Hearing Event No.: 636672

Legislative Authority: Section 357.(1)(d.1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended

Heard: November 28, 2016 in Mississauga, Ontario

APPEARANCES:

Parties

Representative

G. S.

C. S.

City of Mississauga

Sean Doyle

MEMORANDUM OF ORAL DECISION DELIVERED BY MARGARITA OKHOVATI ON NOVEMBER 28, 2016

INTRODUCTION

1This matter came before the Assessment Review Board (the “Board”) on November 28, 2016. An oral decision was rendered at that time. Subsequently, G. S. (the “Applicant”) requested that decision in writing.

2The Board has reviewed its records and has determined that this Application was filed by G. S., the spouse of A. S., the deceased Assessed Person. At this hearing, C. S., their daughter, acted as the representative for the Applicant.

ISSUE

3The issue before the Board is to determine whether the Applicant’s property taxes for the taxation year 2014 should be cancelled, reduced or refunded as a result of the Applicant’s inability to pay due to sickness or extreme poverty under s. 357.(1)(d.1) of the Municipal Act, 2001 (“Act”).

DECISION

4The Board finds that the Applicant does not qualify for relief under s. 357.(1)(d.1) of the Act due to an inability to pay part or all of the taxes due to sickness or extreme poverty.

5The Board therefore dismisses this Application for the cancellation, reduction or refund of taxes for the taxation year 2014 on the property located at (address withheld) in the City of Mississauga (“City”).

REASONS FOR DECISION

Legislation

6Section 357.(1)(d.1) of the Act states that:

Upon application to the treasurer of a local municipality made in accordance with this section, the local municipality may cancel, reduce or refund all or part of the taxes levied on land in the year in respect of which the application is made if the Applicant is unable to pay taxes because of sickness or extreme poverty.

7The Act outlines a two-part test. In order for the Applicant to qualify for relief under this section of the Act, the Board must first determine whether sickness or extreme poverty exists. If neither sickness nor extreme poverty exists, this Application fails. If either is present, the Applicant must demonstrate an inability to pay all or part of his/her taxes as a result of either of those two elements.

Applicant’s Evidence – Sickness

8The Applicant, G.S., is a 63-year old woman who lives alone and owns a three bedroom house in Mississauga.

9The Applicant’s representative, C.S., testified that they found her father dead in a hotel room and consequently her mother suffered from depression and developed heart palpitations after her husband’s death. However, no medical report or document was provided to the Board in this regard.

Applicant’s Evidence – Extreme Poverty

Document Disclosure

10The Applicant submitted the following documents to the City which was collectively entered as Exhibit 1:

• A completed Financial Statement Form.

• A completed Appeal Information Summary.

• Chequing account statements for 2014 with the August statement missing.

• Credit card statements, Bank of Montreal (February-March only) and American Express (July–September only).

Sources of Income

11The Applicant stated that her only source of income is from Canada Pension Plan (“CPP”) in the amount of $890 per month.

12The Applicant filed a Financial Statement Form for the taxation year 2014 which is summarized below (Exhibit 1):

Monthly Income

CPP $ 890.00

Monthly Expenses

Mortgage $ 674.00

Fuel (gas/oil) $ 187.26

Hydro/water $ 180.00

Telephone $ 73.95

House Insurance $ 100.00

Car Insurance $ 100.00

Gas/Auto Repairs $ 100.00

Medication $ 20.00

Food $ 380.00

Transportation $ 80.00

Other Expenses $ 200.00

TOTAL $2,095.21

Other Financial Information

13The Applicant testified that she was in possession of the following (Exhibit 2):

• Chequing account with St. Stanislaus - St. Casimir’s Polish Parishes Credit Union.

• Three credit cards.

• Two cars, a 1994 Ford van which she is not using and a 2009 Ford

value at $4,000.

City’s Evidence

14Sean Doyle, the representative of the City, submitted the following summary of the Applicant’s compassionate appeal on behalf of the City Revenue Division (Exhibit 3):

Monthly Financial Position (per attached application)

• Current Value Assessment of the property: $520,000.00

• Purchase Price: $179,000.00

• Outstanding Mortgage: $140,000.00

• Year of Purchase 1994

• Total Income $ 890.00

• Total Expenses $ 2,095.21

• Income/ Loss before Taxes $ 1,205.21

• Property Taxes $ 355.00

• Net Monthly Income Loss $ 1,560.21

• Yearly Income $ 10,680.00

Property Tax Status as at September 26, 2016

• Annual Taxes for 2014 $ 4,260.26

• Outstanding taxes for 2014 $ 2,144.96

• Annual Taxes for 2013 $ 4,109.68

• Outstanding Taxes for 2013 $ 0

Analysis

15The eligibility criteria for relief is premised on a two-part test. First, an Applicant must demonstrate either sickness or extreme poverty exists. Second, the Board must determine whether the Applicant’s sickness or extreme poverty adversely affected her ability to pay all or part of her property taxes for the 2014 taxation year.

16In the Board’s view, the threshold for individuals who claim an inability to pay their property taxes because of sickness and extreme poverty as envisaged by the Act cannot simply be that the individuals are unable to make ends meet in the year under appeal. The Act qualifies the level of poverty as “extreme” and in the Board’s view this raises the level of requirement to qualify for relief under the Act to a level that is materially and substantially above that of the simple and ordinary meaning of poverty. The Board believes that individuals must demonstrate that after having called upon every resource available to them and having explored every reasonable opportunity to mitigate any financial stresses there are no means of being able to pay some or all of their property taxes. In addition, the individuals must demonstrate that they have actually taken steps and explored every reasonable opportunity to manage their debts and mitigate their tax responsibility.

Sickness

17The Board considered the evidence presented by the representative for the Applicant regarding her illness. Although there was no medical report submitted by the Applicant, the Board acknowledges the trauma the Applicant experienced with respect to her husband’s death and on the balance of probabilities accepts that the Applicant is depressed and is incapable of being employed due to her condition.

Extreme Poverty

18In this case the Board finds that the Applicant does not meet the condition of being in extreme poverty for the following reasons.

19The City representative questioned the Applicant as to how she was able to maintain her lifestyle considering her monthly income of $890 and her monthly expenses of $2,095.21, which would leave her with net income loss of $1,205.21 per month. In this respect the representative for the Applicant stated that the Applicant borrowed $50,000 from a family friend which was paid to her gradually since 2013 and that she is paying interest on the money she borrowed. When the Applicant was asked whether she had any written proof for that statement, she responded that she did not.

20The Board notes that the Applicant was in possession of at least $10,000 to $15,000 every year in her possession which would have easily enabled her to pay her property taxes.

21Furthermore, it was noted in the Applicant’s chequing account that on July 9, 2014, $40,401 was deposited in her account. When asked for verification, she stated that she cashed her husband’s life insurance after his death. The Board notes that by December 2014 the balance in the account was $689.04. When asked for explanation, she responded that she spent on the house by repairing a part of the roof and installing an air control. She was asked again whether she could provide the Board with any invoice or receipt, she responded that she could not.

22The Board does not accept the Applicant’s explanation and finds it very unusual that she would spend $40,401 for repairing a part of the roof of her house and install an air control in the house with no further explanation. The Board notes that based on the Applicant’s written and oral testimony, she had approximately $60,000 to $70,000 in her possession since 2013, which would enable her to pay her property taxes.

23Moreover, the Board notes from the transactions in the Applicant’s credit card invoices that as Mr. Doyle suggested, the Applicant did not live within her means. When asked to explain as to how she could spend the money she did with her limited income as shown in the statements, the representative for the Applicant stated that she and her sister have joint accounts with their mother and use the same credit cards therefore, some expenditures in the credit cards statements belong to them.

24The Board does not accept the explanation of the representative for the Applicant and notes that all the accounts are under the Applicant’s name only.

25Furthermore, in response to the question as to whether the Applicant considered renting out a room or a part of her house to generate some income in order to enable her to pay her property taxes, she answered no because the house needed some repair.

CONCLUSION

26Based on the reasons stated above, the Board finds that the Applicant did not establish the requirements for the Board to make a finding on an inability to pay her property taxes. In fact, the evidence reveals that the Applicant has been able to pay her property taxes despite her medical condition and does not qualify for relief under the Act from paying all or part her property taxes.

27The Board therefore dismisses the Applicant’s application for the cancellation, reduction or refund of taxes for the 2014 taxation year.