Vaillancourt v. Vaillancourt

Vaillancourt v. Vaillancourt

The deed was a notarial inter vivos gratuitous gift that, by operation of C.C.Q. s.1633 and related provisions, is presumed fraudulent where the donor became insolvent as a result; liability to the Crown under ITA s.160 arose at the time of the transfer making the Crown's claim effective and certain for Paulian...

Source-derived case information.

Citation
2007 FC 1294
Parties
Judgment Creditor / Applicant: Minister of National Revenue (Her Majesty in right of Canada); Judgment Debtor / Respondent: Albert Vaillancourt; Co Respondent: Denis Vaillancourt
Court
Federal Court
Jurisdiction
Canada
Judgment Date
10 December 2007
Procedural Posture
Tax Collection Proceedings Under the Income Tax Act (certification Under S.223 and Assessment Under S.160) / Show Cause / Motion to Quash Heard; Reasons for Order and Order (motion Dismissed)
Outcome
Motion to quash dismissed; deed of gift declared void against the judgment creditor; interim charge on the property declared definitive; costs awarded to the Crown.
Legal Topics
Income Tax Act S.160 Transferee Liability, Paulian Action / Inopposability of Gifts (c.c.q.), Charging Order (federal Courts Rules 458 459), Notarial Inter Vivos Gift, Presumption of Fraud (c.c.q. 1633)
Source Language
english
Tax Law Civil Procedure Property Law Quebec Civil Law Debt Collection Income Tax Act S.160 Transferee Liability Paulian Action / Inopposability of Gifts (c.c.q.) Charging Order (federal Courts Rules 458 459) +2 more

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Parties

Minister of National Revenue (Her Majesty in right of Canada)

Judgment Creditor / Applicant

Albert Vaillancourt

Judgment Debtor / Respondent

Denis Vaillancourt

Co Respondent

Procedural Posture

Tax Collection Proceedings Under the Income Tax Act (certification Under S.223 and Assessment Under S.160) / Show Cause / Motion to Quash Heard; Reasons for Order and Order (motion Dismissed)

Legal Issues

  1. 1 Whether the notarial deed of gift of the immovable was enforceable against the Crown as judgment creditor
  2. 2 Whether the inter vivos gift was made in fraud of creditors so as to be inopposable under the Civil Code of Québec
  3. 3 Whether the Crown’s claim was certain and antecedent to or contemporaneous with the gift such that a Paulian action is maintainable

Ratio Decidendi

The deed was a notarial inter vivos gratuitous gift that, by operation of C.C.Q. s.1633 and related provisions, is presumed fraudulent where the donor became insolvent as a result; liability to the Crown under ITA s.160 arose at the time of the transfer making the Crown's claim effective and certain for Paulian purposes; accordingly the gift is void against the Crown and the interim charge registered by the Crown is made definitive.

Court Disposition

Motion to quash dismissed; deed of gift declared void against the judgment creditor; interim charge on the property declared definitive; costs awarded to the Crown.

Orders

  • Deed of gift involving the property described in Appendix 1 is void against the judgment creditor.
  • The property described in Appendix 1 is definitively encumbered with a charge for payment to the judgment creditor of the outstanding amount of the claim and the costs relating to the June 7, 2001 orders and this motion to quash (respondents dismissed with costs).