Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE:

October 17, 2023

FILE NO.:

WR 185207

Assessed Person(s):

A.E.

Applicant(s):

A.E.

Respondent(s):

City of Toronto

Property Location(s):

Address Withheld

Municipality(ies):

City of Toronto

Roll Number(s):

Roll Number Withheld

Appeal Number(s):

3508430

Taxation Year(s):

2022

Hearing Event No.:

781675

Legislative Authority:

Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A

APPEARANCES:

Parties

Counsel*/Representative

A.E.

Self-represented

City of Toronto

Amy Tieu*

HEARD:

September 26, 2023 by telephone conference call

ADJUDICATOR(S):

Subuola Awoleri, Member

DECISION

OVERVIEW

1A.E. (the “Applicant”) filed an application to the City of Toronto (the “City”) to have his 2022 property taxes reduced, cancelled or refunded because he was unable to pay these taxes due to either sickness or extreme poverty under Section 323(1)(e) of the City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A.

2The City passed a by-law delegating its authority to determine such applications to the Assessment Review Board (the “Board”).

3At the completion of the hearing, the Board provided the parties with an oral decision. The Applicant thereafter requested for written reasons for the oral decision.

Issues for the Hearing

4The issue to be determined is if the Applicant’s 2022 property taxes should be cancelled, reduced or refunded as a result of the Applicant’s inability to pay due to sickness or extreme poverty. This requires the Board to determine:

a. if the Applicant was unable to pay his property taxes;

b. if the Board finds that he was unable to pay his property taxes, the Board must determine if the inability to pay was due to either sickness or extreme poverty; and

c. if the Board determines that he was unable to pay due to sickness or extreme poverty, the Board must then decide on the amount of the property taxes levied in 2022 to be cancelled, reduced or refunded.

Result

5The Board finds that the Applicant was able to pay the property taxes levied on the Subject Property in 2022, and therefore dismisses this application.

ANALYSIS

Issue 1 – Was the Applicant able to pay his property taxes in 2022?

6A determination by the Board of the Applicant’s ability to pay his property taxes requires a contextual analysis of the Applicant’s income and expenses and an examination of all financial resources available to him in 2022. This will be used to determine if he could have mitigated his property tax obligation.

Income

7The Applicant’s documentary disclosure served on the City and filed with the Board, included his monthly bank account statements and a financial information form. In the financial information form, the Applicant acknowledged that he did not earn income. However, in the said form, for the purpose of this application, his monthly source of income was financial support from his family outside Canada.

8Based on this information, as admitted by the Applicant, and corroborated by his monthly bank account statements, his monthly income from his family in 2022 was $9,371.67. Although the Applicant testified that he would repay his family, he admitted that his family has not asked him to repay the money and he did not pay back any of the money in 2022. Furthermore, there was nothing presented into evidence by the Applicant that the money transferred to him by his family was a loan.

Expenses

9The Applicant’s undisputed monthly expenses in 2022 was $9,518.86. When subtracting the total monthly income from the monthly expenses, the net income is ($-147.19).

10The Applicant’s monthly income and expenses are summarized in Table 1 below:

Table 1

Amount ($)

Income (Payments from Family)

9,371.67

Expenses

Mortgage

3,850.00

Property taxes

1,174.42

Home Insurance

504.00

Water & Waste

104.70

Heat

290.85

Hydro

375.66

Cell phone

98.57

Internet

54.84

Groceries

307.15

Household supplies

100.00

Transit/TCC

60.21

Meals outside the home

341.20

Clothing

150.00

Exchange of Canadian Cash to US Dollars

111.48

Lawn Care

150.00

Child Support

1,441.67

Uber

306.00

Smart Security

53.11

Gym membership

45.00

Total Monthly Expenses

9,518.86

Net Income

(-147.19)

Assets and Liabilities

11The current value assessment of the Subject Property provided by the Municipal Property Assessment Corporation (“MPAC”) as of January 1, 2016 is $2,174,000. The City estimated the market value of the Subject Property, based on recent sales of properties within the vicinity, to be in the range of $4,300,000 - $4,500,000. The Applicant admitted that the Subject Property was purchased in 2018 for $3,400,000 and was listed for sale in February and March 2022 for $6,200,000, but it did not sell. He further admitted that he is trying to sell it for more than $3,400,000 (the purchase price), even though he does not know its present market value.

12The total undisputed asset of the Applicant was $2,199,845.14, and the total undisputed liability of the Applicant was $984,500. Subtracting this amount from the net asset of $2,199,845.14 provides a net worth of $1,215,345.14.

13The Applicant’s assets and liabilities in 2022 are summarized in Table 2 below:

Table 2

Assets

Amount ($)

Home (Current Value Assessment from MPAC)

2,174,000

Chequing Accounts

25,845.14

Total Asset

2,199,845.14

Liabilities

Mortgage

700,000.00

Lump Sum Pay to Spouse

280,000

Credit Card

4,500

Total Liabilities

984,500

Net Asset (Total Assets Less Liabilities)

1,215,345.14

14The City’s witness, Barry Henaut, testified that the Applicant benefits from an elderly rebate, which is a deferral of tax increase, and upon sale of the Subject Property, the amount deferred is paid to the City.

15The City requested that the Board dismiss the Applicant’s application. It submitted that based on the evidence presented by the Applicant, the Applicant has not satisfied the Board that he is in dire need and has also not met the requirement of the test to show that he was unable to pay his property taxes.

16The total property taxes levied on the Subject Property in 2022 was $13,738.22, which the Applicant paid in full by October 2022.

Findings on Issue 1

17The Board finds that the Applicant was able to pay the property taxes levied on the Subject Property in 2022 and therefore does not qualify for relief.

18In reviewing the Applicant’s monthly bank account statements, there were some transfers made by the Applicant, which the Applicant was unable to account for. For instance, the Applicant made the following transfers: January 7- $11,664, January 31- $736.06, March 1- $1,090.28, March 31- $3,286.58 and May 2- $17,500. This provides a total amount of $34,276.92, transferred by the Applicant from his bank account. During cross-examination, the Applicant’s response to where and what the money was used for was: “I don’t recall where it went.”

19Furthermore, on August 25 and 29, 2022, the Applicant paid Canada Revenue Agency the sum of $19,970.14, in unpaid taxes. The Applicant testified that he paid this amount from the money sent to him from his family outside Canada. In addition, the Applicant’s bank account balance as of December 30, 2022, was $25,845.14.

20In S.C. v. Whitby (Town), [2016] O.A.R.B.D. No. 55 at paragraph 37, the Board held that:

In the Board’s view the threshold for individuals who claim an inability to pay their property taxes because of sickness cannot simply be that the individuals are unable to make ends meet. The individuals must demonstrate that after having called upon every resource available to them and having explored every reasonable opportunity to mitigate their financial stresses, they have no means of being able to pay some or all of their property taxes.

21The Applicant called upon the financial resources available to him, and used this means to mitigate his property tax obligation and still had enough to afford the basic necessities of life and other discretionary expenses, which includes smart security, lawn care, exchange of Canadian dollars to US dollars (expended when visiting family abroad). Discretionary expenses must not take precedence over property taxes, see A.P. v. Toronto (City) [2018] O.A.R.B.D. No. 150 paragraph 26.

22In E. B. v. Toronto (City), 2016 CanLII 45380 (ON ARB), paragraphs 19 and 20, the Board determined that:

These applications are of last resort and the Applicant must have depleted all resources before making such an application.

The Applicant must demonstrate in her applications, that after managing her resources and expenditures, she has no further resources to meet the basic necessities of life in addition to paying all or some of her property taxes.

23The Applicant further requested that the Board makes an order to refund at least 50% of the property taxes he paid in 2022, in the amount of $6,869.11. As decided in T.I v. Toronto (City), [2019] O.A.R.B.D. No. 165 at paragraph 29, an order for refund of property taxes would be appropriate where the Applicant was unable to afford the basic necessities of life after paying his property taxes. Furthermore, the Board held that “a finding that the applicant was unable to pay his taxes is a reasonable one where there is no inappropriate discretionary spending.”

24An order to refund half of the property taxes paid by the Applicant in 2022, would be unreasonable, since the Applicant could afford the basic necessities of life after paying his property taxes, in addition to paying discretionary expenses, as seen in Table 1.

25Having determined that the Applicant was able to pay the property taxes in 2022, the Board does not need to consider whether the Applicant was in a condition of sickness or extreme poverty.

CONCLUSION

26The Board finds that the Applicant was able to pay all his property taxes in 2022.

ORDER

27The Board orders that this application for reduction, cancellation or refund of the 2022 property taxes is dismissed.