Iris Technologies, Inc. Files $250-million Lawsuit Against CRA

Telecommunications Provider Seeks Damages for “abuse of process and negligence”

TORONTO--(BUSINESS WIRE)--Iris Technologies Inc. (Iristel) has filed a statement of claim in Federal Court against Canada Revenue Agency (CRA) and four (4) of its agents, seeking $250-million dollars in “damages for misrepresentation, misfeasance in public office, abuse of process and negligence.”

Iristel is Canada’s largest independent provider of telecommunications services to residential, commercial, and wholesale customers, and is the only fully CRTC licensed independent provider that operates voice and data facilities-based networks in all of Canada’s 10 provinces and 3 territories.

The company has been embroiled in a multi-year battle with CRA over GST payments. Samer Bishay, The CEO of Iristel, says the actions of CRA are stifling jobs, smothering economic growth, and denying Canadians more competition in the wireless universe – the lack of which contributes to Canada’s reputation for having the most expensive wireless fees in the world.

“The CRA has withheld GST tax refunds of over 80 million dollars from Iristel, knowing that its actions are not lawful and after previous audits that found no wrongdoing or basis to withhold these refunds,” says Bishay.

According to the Statement of Claim: “Additionally, when confronted with Iristel’s request for reasons, information, documents, or any other support for their position, CRA embarked on a years-long effort to hide information from Iristel and prolong that period in which Iristel is deprived of its rightful tax remittances and access to justice.”

“CRA has engaged in a pattern of persistent, cat-and-mouse, obfuscation and delay for more than 2 years,” the statement alleges.

Iristel’s claim goes on to state the Defendants have abused legislation and further “…the Defendants negligently, maliciously ignored their statutory obligations and misused the audit and assessment powers …with the intent of harming Iristel.”

Among Iristel’s other assertions is that the defendants actions were done in bad faith or maliciously with the intent of harming Iristel’s reputation, and individuals (CRA agents) were motivated by self-interest, including the impact on their compensation and status.

About Iris Technologies

Iris Technologies (Iristel) is Canada’s largest and fastest growing carrier providing innovative communication services that are changing how consumers and businesses communicate. We offer our OTT, Voice Service Provider and Carrier customers a full suite of domestic and international Local Voice, Wholesale Voice, 911, SMS and Platform services that are supported by Iristel’s unified VoIP and LTE networks. Founded in 1999, Toronto-based Iristel operates Canada’s largest facilities-based local voice network extending Coast-to-Coast-to-Coast as well as Ice Wireless, a LTE carrier with operations in Canada's Far North.