Blue Bridge Trust Company Inc. v. Canada (National Revenue)

Blue Bridge Trust Company Inc. v. Canada (National Revenue)

The Court declined to grant the broad declaratory relief concerning French law and jurisdiction because the issues were theoretical, would require adjudication of French law and facts (for which France was not a party), and Blue Bridge had not satisfied the conditions for such relief; however, on the statutory test in ss.231.2(1) and 231.7(1) ITA the Minister reasonably determined the Article 26 requests were foreseeably relevant, the recipient trustee failed to comply, privilege was not asserted, and therefore a s.231.7 compliance order compelling Blue Bridge to produce the requested documents was properly granted.

Citation
2020 FC 893
Parties
Applicant (trustee): Blue Bridge Trust Company Inc.; Respondent (competent Authority): Minister of National Revenue
Court
Federal Court
Jurisdiction
Canada
Judgment Date
11 September 2020
Procedural Posture
Judicial Review and Summary Compliance Applications Under the Income Tax Act / Federal Court Judgment (decision on Applications and Compliance Orders)
Outcome
Blue Bridge's applications for declaratory judgment and judicial review dismissed; Court ordered Blue Bridge to comply with RFIs and produce specified documents and information within thirty business days and awarded costs to the Minister.
Legal Topics
Exchange of Tax Information, Tax Treaty Interpretation, Section 231.2 and 231.7 ITA Compliance, Judicial Review of Administrative Acts, Trustee Confidentiality and Duties
Source Language
English
Tax Law International Law Administrative Law Trust Law Exchange of Tax Information Tax Treaty Interpretation Section 231.2 and 231.7 ITA Compliance Judicial Review of Administrative Acts +1 more

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Parties

Blue Bridge Trust Company Inc.

Applicant (trustee)

Minister of National Revenue

Respondent (competent Authority)

Procedural Posture

Judicial Review and Summary Compliance Applications Under the Income Tax Act / Federal Court Judgment (decision on Applications and Compliance Orders)

Legal Issues

  1. 1 Whether Blue Bridge (as trustee) and the trusts are subject to French tax law
  2. 2 Whether France may tax Canadian trust capital or require information absent nexus with France
  3. 3 Whether Article 26 requests satisfy the foreseeable relevance standard

Ratio Decidendi

The Court declined to grant the broad declaratory relief concerning French law and jurisdiction because the issues were theoretical, would require adjudication of French law and facts (for which France was not a party), and Blue Bridge had not satisfied the conditions for such relief; however, on the statutory test in ss.231.2(1) and 231.7(1) ITA the Minister reasonably determined the Article 26 requests were foreseeably relevant, the recipient trustee failed to comply, privilege was not asserted, and therefore a s.231.7 compliance order compelling Blue Bridge to produce the requested documents was properly granted.

Court Disposition

Blue Bridge's applications for declaratory judgment and judicial review dismissed; Court ordered Blue Bridge to comply with RFIs and produce specified documents and information within thirty business days and awarded costs to the Minister.

Orders

  • Blue Bridge Trust Company Inc. must, within thirty (30) business days (by October 13, 2020), comply with RFIs dated July 20, 2017 and May 28 and 31, 2018 issued under s.231.2(1) ITA and Article 26 of the Canada‑France Convention and produce all information and documents in its possession or control relating to the...
  • Documents and information must be sent to Michel Godbout, Exchange of Information Services, Competent Authority Services Division, International and Large Business Directorate, Compliance Program Branch, Canada Revenue Agency, 344 Slater Street, 8th floor, Ottawa, Ontario, K1A 0L5.