Canada (Minister of National Revenue) v. Blais

Canada (Minister of National Revenue) v. Blais

The Court held that it lacked jurisdiction, in a motion in objection to seizure of movables, to vacate a s.224 letter of requirement or to cancel a legal hypothec registered under s.223(5); the certificate and hypothec were validly registered. On the merits of the seizure of movables, the adverse claimant Robert Ross rebutted the presumption of ownership for the golf bag and the seizure of that item was vacated, whereas the former spouse Denise Filteau failed to rebut the presumption and her objection was dismissed. The debtor established that his Subaru Outback was an instrument of work necessary for his duties as a bailiff under art 552(3) C.C.P. and the seizure of the vehicle was vacated.

Citation
2002 FCT 175
Parties
Judgment Creditor: Minister of National Revenue; Judgment Debtor: Michel Blais; Adverse Claimant: Denise Filteau; Adverse Claimant: Robert Ross
Court
Federal Court
Jurisdiction
Canada
Judgment Date
21 February 2002
Procedural Posture
Objection to Seizure and Sale Under the Income Tax Act / Motion in Objection (hearing and Reasons for Order)
Outcome
Partial allowance and partial dismissal: objections dismissed where lacking jurisdiction or unsupported; specific items vacated where ownership or exemption proven.
Legal Topics
Seizure of Movables, Legal Hypothec Registration Under S.223, Requirement to Employers Under S.224, Exemption for Instruments of Work (art 552(3) C.c.p.), Presumption of Possession (art 928 C.c.q.), Judicial Review Jurisdiction
Source Language
English
Tax Law Civil Procedure Property Law Administrative Law Seizure of Movables Legal Hypothec Registration Under S.223 Requirement to Employers Under S.224 Exemption for Instruments of Work (art 552(3) C.c.p.) +2 more

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Parties

Minister of National Revenue

Judgment Creditor

Michel Blais

Judgment Debtor

Denise Filteau

Adverse Claimant

Robert Ross

Adverse Claimant

Procedural Posture

Objection to Seizure and Sale Under the Income Tax Act / Motion in Objection (hearing and Reasons for Order)

Legal Issues

  1. 1 Whether the Federal Court on a motion in objection to seizure of movables has jurisdiction to vacate a letter of requirement issued under s.224 of the Income Tax Act
  2. 2 Whether the Court has jurisdiction on such a motion to cancel a legal hypothec registered under s.223(5) of the Income Tax Act
  3. 3 Whether adverse claimants rebutted the presumption of ownership under C.C.Q. art 928 for seized items

Ratio Decidendi

The Court held that it lacked jurisdiction, in a motion in objection to seizure of movables, to vacate a s.224 letter of requirement or to cancel a legal hypothec registered under s.223(5); the certificate and hypothec were validly registered. On the merits of the seizure of movables, the adverse claimant Robert Ross rebutted the presumption of ownership for the golf bag and the seizure of that item was vacated, whereas the former spouse Denise Filteau failed to rebut the presumption and her objection was dismissed. The debtor established that his Subaru Outback was an instrument of work necessary for his duties as a bailiff under art 552(3) C.C.P. and the seizure of the vehicle was vacated.

Court Disposition

Partial allowance and partial dismissal: objections dismissed where lacking jurisdiction or unsupported; specific items vacated where ownership or exemption proven.

Orders

  • The objection to the seizure by Ms. Denise Filteau be dismissed because it is unfounded
  • The objection filed by Mr. Robert Ross in regard to the golf bag is allowed, and the seizure of the golf bag is therefore vacated