Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: June 20, 2022
FILE NO.: WR 179742
Assessed Person(s): S.D.D.
Applicant(s): S.D.D.
Respondent(s): City of Toronto
Property Location(s): Address Withheld
Municipality(ies): City of Toronto
Roll Number(s): Roll Number Withheld
Appeal Number(s): 3480979
Taxation Year(s): 2021
Hearing Event No.: 768292
Legislative Authority: Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A
APPEARANCES:
| Parties | Counsel*/Representative |
|---|---|
| S.D.D. | Self-represented |
| City of Toronto | Graham Thomson* and Barry Henaut |
HEARD: June 14, 2022 by telephone conference call
ADJUDICATOR(S): Margarita Okhovati, Member
DECISION
OVERVIEW
1S.D.D. (“the Applicant”) filed an application to the City of Toronto (“City”) to have her 2021 property taxes cancelled, reduced or refunded because she was unable to pay, due either to sickness or extreme poverty, under s. 323 (11) of the Act.
2The City has passed a by-law delegating its authority to determine such applications to the Assessment Review Board (the “Board”).
Issues for the Hearing
3The main issue before the Board is whether the Applicant’s 2021 property taxes should be cancelled, reduced or refunded due to her inability to pay because of sickness or extreme poverty. This requires the Board to determine:
if the Applicant was unable to pay her 2021 property taxes; and
if the Board determines she was unable to pay her property taxes, the Board must then determine if the reason she was unable to pay was either sickness or extreme poverty.
4Finally, if the Board determines that she was unable to pay because of sickness or extreme poverty, the Board must then decide on the amount of the property taxes levied in 2021 to be cancelled, reduced or refunded.
Result
5The Board finds that the Applicant failed to demonstrate that she was unable to pay the property taxes levied in 2021. The application is dismissed.
ANALYSIS
Issue 1 – Was the Applicant able to pay the property taxes levied in 2021?
6The Applicant testified that she is the only occupant of a two-bedroom residential condominium. She stated that she has been receiving disability since 2019 and that this is the only source of income she tried to live on. Based on the submitted documents, the Applicant’s monthly income is approximately $1,648.40 ($1,629.50 from disability payments and $18.90 as a rebate for Goods and Services Tax (“GST”).
7The Applicant submitted statements for one checking account and two credit card accounts. The balance on the Applicant’s bank accounts as of December 31, 2021 was $1,551.90. The Applicant was questioned whether she was in possession of a savings account. She responded that she was, and according to her oral testimony, the balance in her savings account as of December 31, 2021 was $151.18 (Total $1,703.08). The Applicant did not acknowledge or disclose the statements of her savings account until she was asked. As well, the statements of some of her bank accounts and the RRSP did not show the last balance as of December 31, 2021.
8Monthly expenses reported by the Applicant in the Financial Information Form for 2021 totaled approximately to $1,842.10
9Monthly expenses of the Applicant are summarized as follows:
Mortgage: $325
Property tax: $20.50 (paid $246 in 2021)
Home insurance: $41.85
Condominium fees: $583.53
Cell phone and internet: $110.96
Groceries: $175.73
Household supplies: $93.44
Transit: $37.87
Interest on credit cards and bank fees: $58.84
Loan: $161.25
Meals – outside: $128.88
Clothing and laundry: $23.96
Recreation/Entertainment: $31.91
Various medical and dental expenses: $48.38
Income Total $1,648.40
Expenses Total $1,842.10
Net Total -$193.70
10Counsel for the City submitted that there are discrepancies as to what the actual income and expenses of the Applicant are, and to calculate all the figures and compare them with the information in the documentary evidence during the hearing is not possible.
11In her opening remarks, the Applicant stated that in 2021, although she tried to reduce her expenses however, some of the numbers in her expenses are quite high with respect to eating outside, groceries, public transit, cat expenses, entertainment, etc. The Board notes that as stated by counsel for the City, the Applicant’s report regarding her income and expenses in the Financial Information Form is very different from the information in the documentary evidence and her oral testimony.
12The City submitted that the Applicant agrees on the value of the subject property to be $450,000, and when total liabilities are considered, the equity in the subject property amounts to approximately $384.000.
13Furthermore, the Applicant testified that she has $7,161 in the Registered Retirement Savings Plan (“RRSP”) but she did not show the updated amount as of December 31, 2021. In addition, as mentioned above, the Applicant had $1,703.08 cash in her bank accounts and $3,021 in her pension plan. She testified that she could not withdraw money from her pension account before she was 65 years old however, she stated that she never explored the opportunity whether she could.
14Moreover, the City noted that in 2021, the Applicant could use the available credit of more than $7,000 in her three bank accounts to pay her property taxes.
15The City’s position is to dismiss the application for the Applicant was able to pay her 2021 property taxes after considering the funds available to her in 2021 and despite the significant expenses incurred by the Applicant for eating outside, food deliveries, car rentals, online shopping and game playing, music, alcohol and gift purchases.
Findings on Issue 1- Ability to Pay
16The Board notes that the Applicant’s outstanding taxes for 2021 is $1,403.04 and the cash balance in her accounts is $1,703.08. Even if, we do not consider the other funds available to the Applicant and the equity on her property, this amount alone could have paid her 2021 taxes.
17Therefore, it is the Board’s finding that the Applicant was able to pay her 2021 property taxes without cutting from the necessities of life and that she is not in a negative situation when it comes to poverty.
18Having decided that the Applicant was able to pay the property taxes in 2021, the Board has no reason to consider whether the Applicant is in a condition of sickness or extreme poverty.
ORDER
19The Board orders that the application is dismissed.
"Margarita Okhovati"
MARGARITA OKHOVATI
MEMBER
Assessment Review Board
Website: www.tribunalsontario.ca/arb