Federal Court Denies Extension for Komarnisky v Canada Tax-Free Savings Account Judicial Review

• The Federal Court denied an extension to a man seeking to challenge a Canadian Revenue Agency (CRA) decision on his 2020-21 tax-free savings account taxes.
• The court found insufficient evidence to support the applicant's continued intention to pursue the matter, despite his recent attempt to bring a first extension motion.
• Applicants must provide strong evidence of continued intention and sufficient merit to warrant quashing the CRA decision in order to secure an extension for judicial review applications.

The court found insufficient evidence to support the applicant's continued intention to pursue the matter, despite his recent attempt to bring a first extension motion.

The Federal Court has established a high standard for granting extensions to apply for judicial reviews, particularly in cases involving tax-free savings accounts. In the recent decision of Komarnisky v Canada (Attorney General), 2026 CanLII 82126 (FC), the court denied an extension to a man seeking to challenge a Canadian Revenue Agency (CRA) decision on his 2020-21 tax-free savings account taxes. The applicant had initially moved for an extension in June 2023, citing delays due to his self-represented status and lack of familiarity with procedural requirements. However, the court found insufficient evidence to support the applicant's continued intention to pursue the matter, despite his recent attempt to bring a first extension motion.

The Federal Court's decision highlights the importance of providing strong evidence of continued intention to pursue a judicial review application. In this case, the applicant's explanations for the delay were deemed limited, imprecise, and unreasonable by the court. The judge emphasized that a lack of familiarity with the rules does not constitute a reasonable explanation for delay, and that abiding by statutory deadlines serves the public interest. This ruling sets a precedent for future cases, where applicants will need to demonstrate a clear commitment to pursuing their claims.

The decision has significant implications for individuals seeking to challenge CRA decisions on tax-free savings accounts. As the court's ruling demonstrates, applicants must provide robust evidence of continued intention and sufficient merit to warrant quashing the CRA decision. This standard will likely impact lawyers advising clients on tax-free savings accounts, who should note that the Federal Court has set a high bar for granting extensions to apply for judicial reviews. In light of this decision, it is essential for individuals seeking to challenge CRA decisions to carefully review their options and ensure they have sufficient evidence to support their claims.

Lawyers advising clients on tax-free savings accounts should note that the Federal Court has set a high bar for granting extensions to apply for judicial reviews, requiring strong evidence of continued intention to pursue the matter and sufficient merit to warrant quashing the CRA decision.

Source: Original reporting via Canadian Legal Newswire