Canada (National Revenue) v. Shaker

Canada (National Revenue) v. Shaker

A trustee’s legal interest in trust property, held in the trustee capacity for beneficiaries, is not an interest in that property for the purposes of Rule 458 where the debt is the trustee’s personal liability; accordingly the Interim Charge against the Navy Wharf Property must be discharged and the respondents’ request to pay net sale proceeds into court to permit cross-examination was refused.

Citation
2022 FC 407
Parties
Judgment Creditor: Canada (National Revenue) / Attorney General of Canada / Canada Revenue Agency; Judgment Debtor / Trustee: Charles Shaker
Court
Federal Court
Jurisdiction
Canada
Judgment Date
24 March 2022
Procedural Posture
Income Tax Act Enforcement Charging Order / Show Cause Hearing and Rule 462 Motion to Discharge Interim Charge
Outcome
Interim Charge discharged; respondents' request to pay net proceeds into court refused; costs awarded to Mr. Shaker in the amount of CAD 12,000.00
Legal Topics
Charging Order, Interim Charge, Trustee Liability, Beneficial Interest, Costs
Source Language
English
Trusts Tax Civil Procedure Property Law Charging Order Interim Charge Trustee Liability Beneficial Interest +1 more

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Parties

Canada (National Revenue) / Attorney General of Canada / Canada Revenue Agency

Judgment Creditor

Charles Shaker

Judgment Debtor / Trustee

Procedural Posture

Income Tax Act Enforcement Charging Order / Show Cause Hearing and Rule 462 Motion to Discharge Interim Charge

Legal Issues

  1. 1 Whether a trustee’s legal title to trust property constitutes an "interest in real property" under Rule 458 so as to permit charging trust property to satisfy the trustee’s personal tax debt
  2. 2 Whether the Court should order payment into court of net sale proceeds to permit cross-examination regarding beneficial interest
  3. 3 Whether the interim charge should be made absolute or discharged

Ratio Decidendi

A trustee’s legal interest in trust property, held in the trustee capacity for beneficiaries, is not an interest in that property for the purposes of Rule 458 where the debt is the trustee’s personal liability; accordingly the Interim Charge against the Navy Wharf Property must be discharged and the respondents’ request to pay net sale proceeds into court to permit cross-examination was refused.

Court Disposition

Interim Charge discharged; respondents' request to pay net proceeds into court refused; costs awarded to Mr. Shaker in the amount of CAD 12,000.00

Orders

  • Motion to set aside the Interim Charge granted
  • Interim Charge against the Navy Wharf Property (PIN 12694-0525 (LT)) discharged