Canada (National Revenue) v. McDonald

Canada (National Revenue) v. McDonald

A contingent beneficial interest of a beneficiary under a will constitutes an 'interest in real property' within the meaning of Rule 458(1)(a); Rule 458 contains no limitation excluding such interests; supporting dictionary definitions and authority confirm an expansive meaning of 'interest'; Rule 462 provides remedial flexibility, therefore the interim charging order should be made absolute.

Citation
2010 FC 340
Parties
Applicant / Judgment Creditor: Her Majesty the Queen in Right of Canada (Minister of National Revenue); Respondent / Judgment Debtor: Don McDonald
Court
Federal Court
Jurisdiction
Canada
Judgment Date
29 March 2010
Procedural Posture
Income Tax Assessment and Enforcement (charging Order) / Show Cause Hearing Under Federal Court Rules 458 459; Motion to Make Interim Charging Order Absolute
Outcome
Interim charging order made absolute against the respondent's interest in specified real property for payment of $2,546,249.27 plus applicable interest and costs
Legal Topics
Charging Order, Interest in Real Property, Estate Administration, Interpretation of Court Rules, Income Tax Act Certificate Enforcement
Source Language
English
Tax Law Civil Procedure Enforcement of Judgments Trusts and Estates Charging Order Interest in Real Property Estate Administration Interpretation of Court Rules +1 more

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Parties

Her Majesty the Queen in Right of Canada (Minister of National Revenue)

Applicant / Judgment Creditor

Don McDonald

Respondent / Judgment Debtor

Procedural Posture

Income Tax Assessment and Enforcement (charging Order) / Show Cause Hearing Under Federal Court Rules 458 459; Motion to Make Interim Charging Order Absolute

Legal Issues

  1. 1 Whether a beneficiary's indirect, contingent beneficial interest under a will constitutes an 'interest in real property' under Federal Court Rule 458(1)(a)
  2. 2 Whether Rule 458(1)(a) permits the registration of a charging order against such an interest
  3. 3 Whether making the charging order absolute would be premature or would unduly disrupt estate administration

Ratio Decidendi

A contingent beneficial interest of a beneficiary under a will constitutes an 'interest in real property' within the meaning of Rule 458(1)(a); Rule 458 contains no limitation excluding such interests; supporting dictionary definitions and authority confirm an expansive meaning of 'interest'; Rule 462 provides remedial flexibility, therefore the interim charging order should be made absolute.

Court Disposition

Interim charging order made absolute against the respondent's interest in specified real property for payment of $2,546,249.27 plus applicable interest and costs

Orders

  • The interest of Don McDonald in the specified parcels of real property is charged with payment of $2,546,249.27, the amount due to Her Majesty the Queen in Right of Canada as represented by the Minister of National Revenue pursuant to a certificate registered May 8, 2008 (having the force of a judgment under...