Chamoun v. Canada (Department of National Revenue)

Chamoun v. Canada (Department of National Revenue) Court (s) Database Federal Court of Appeal Decisions Date 2004-01-15 Neutral citation 2004 FCA 12 File numbers A-83-03 Decision Content Date: 20040115 Docket: A-83-03 Citation: 2004 FCA 12 CORAM: DESJARDINS J.A. LÉTOURNEAU J.A. NADON J.A. BETWEEN: ANTOINE CHAMOUN Applicant and THE DEPARTMENT OF NATIONAL REVENUE Respondent Hearing held at Montréal, Quebec, on January 14, 2004. Judgment delivered at Montréal, Quebec, on January 15, 2004. REASONS FOR JUDGMENT BY: LÉTOURNEAU J.A. CONCURRED IN BY: DESJARDINS J.A. NADON J.A. Date: 20040115 Docket: A-83-03 Citation: 2004 FCA 12 CORAM: DESJARDINS J.A. LÉTOURNEAU J.A. NADON J.A. BETWEEN: ANTOINE CHAMOUN Applicant and THE DEPARTMENT OF NATIONAL REVENUE Respondent REASONS FOR JUDGMENT LÉTOURNEAU J.A.: [1] The applicant challenges a decision of the Tax Court of Canada upholding the assessments made against him under the Income Tax Act for the 1992 and 1993 taxation years. [2] The Minister of Revenue (the Minister) made the assessments after denying the tax credits claimed by the applicant for charitable donations made to the Ordre Antonien libanais des Maronites (the Order). The Minister also assessed penalties for each year in issue. [3] After an audit of the Order's books and records, the Minister uncovered a fraudulent scheme whereby either receipts were issued in amounts that were, on average, five times greater than that of the donations made by the persons to whom the receipts were issued, or, in the case of cash donations, only 20% of the amount shown on the receipt was retained by the Order, and 80% was returned to the donor. [4] The applicant is only one of many donors who found themselves having to explain the nature and the often suspicious circumstances under which the charitable donations were made. He also had to refute the Minister's allegations in support of the new assessments. His donations were made in cash, rather than by cheque, even though, as the Justice noted, the money came from the applicant's chequing account. [5] During the hearing before the Tax Court of Canada, tangible evidence was produced on which the Justice relied in finding that the applicant had, in fact, taken part in the scheme devised by the Order. I mention only some of the evidence: the applicant's name appeared on the fraudulent lists seized, along with the names of others who either confessed or reached an agreement with Revenue Canada; the circumstances surrounding the return of the donations and the receipts were nebulous and suspicious; the 1992 receipt was backdated, which was a characteristic of the Order's scheme; the donations stopped when the Minister began his investigation. It is not open to us, in the circumstances, to set aside the Justice's findings of fact that were also supported by testimony. [6] Moreover, the Justice did not believe the applicant and found that the reasons he gave to explain his donations to the Order were implausible, to say nothing of the contradictions and wavering in his testimony. We do not have the authority to review reasonable findings of fact that are based on the credibility of witnesses we neither saw nor heard. [7] The application for judicial review will be dismissed with costs. "Gilles Létourneau" J.A. "I concur. Alice Desjardins J.A." "I concur. Marc Nadon J.A." Certified true translation Diane C. Skiejka, BCL, LLB FEDERAL COURT OF APPEAL SOLICITORS OF RECORD DOCKET: A-83-03 STYLE OF CAUSE: ANTOINE CHAMOUN Applicant and THE DEPARTMENT OF NATIONAL REVENUE Respondent PLACE OF HEARING: Montréal, Quebec DATE OF HEARING: January 14, 2004 REASONS FOR JUDGMENT BY: LÉTOURNEAU J.A. CONCURRED IN BY: DESJARDINS J.A. NADON J.A. DATED: January 15, 2004 APPEARANCES: Antoine Chamoun (for himself) FOR THE APPLICANT Simon-Nicolas Crépin Nathalie Lessard FOR THE RESPONDENT SOLICITORS OF RECORD: Morris Rosenberg Deputy Attorney General of Canada Montréal, Quebec FOR THE RESPONDENT