CVH Investments Ltd. v. Minister of National Revenue
The Court held that s.224(1.2) of the Income Tax Act gives the respondent priority over the appellant's unsecured interests; the wrong‑party complaint could not be considered on appeal because it was not raised below and the factual record is inadequate; the respondent's failure to pursue its claim in the bankruptcy...
Source-derived case information.
- Citation
- C28072
- Parties
- Appellant: CVH Investments Ltd.; Respondent: The Minister of National Revenue
- Court
- Court of Appeal for Ontario
- Jurisdiction
- Canada
- Judgment Date
- 30 April 1999
- Procedural Posture
- Civil Appeal Tax/collection / Court of Appeal Decision on Appeal From Trial Judgment Dated August 29, 1997
- Outcome
- Appeal dismissed with costs.
- Legal Topics
- Income Tax Act S.224(1.2), Priority of Crown for Source Deductions, Assessment Against Wrong Party, Bankruptcy Claims and Assessments, Employer Source Deductions
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
CVH Investments Ltd.
Appellant
The Minister of National Revenue
Respondent
Procedural Posture
Civil Appeal Tax/collection / Court of Appeal Decision on Appeal From Trial Judgment Dated August 29, 1997
Legal Issues
- 1 Whether the tax assessment was made against the correct party (whether the bankrupt was the employer)
- 2 Whether s.224(1.2) of the Income Tax Act gives the Crown priority over the appellant's unsecured interests
- 3 Whether the respondent's failure to pursue its claim in the bankruptcy proceedings prevents it from proceeding with its assessment
Ratio Decidendi
The Court held that s.224(1.2) of the Income Tax Act gives the respondent priority over the appellant's unsecured interests; the wrong‑party complaint could not be considered on appeal because it was not raised below and the factual record is inadequate; the respondent's failure to pursue its claim in the bankruptcy did not bar the assessment. The appeal was dismissed with costs.
Court Disposition
Appeal dismissed with costs.
Orders
- Appeal dismissed with costs.
Full Case Text
Judgment text and source record
1 paragraphs
CVH Investments Ltd. v. Minister of National Revenue Collection Decisions of the Court of Appeal Date 1999-04-30 Docket numbers C28072 Judges Weiler, Karen Merle Magnuson; Goudge, Stephen Thomas; Borins, Stephen Subject Civil Decision Content DATE: 19990430 DOCKET: C28072 COURT OF APPEAL FOR ONTARIO RE: CVH INVESTMENTS LTD. (Appellant/Applicant) v. THE MINISTER OF NATIONAL REVENUE (Respondent/ Respondent) BEFORE: WEILER, GOUDGE and BORINS JJ.A. COUNSEL: Warren W. Tobias, for the appellant Wendy J. Linden, for the respondent HEARD: April 15, 1999 On appeal from the judgment of Mr. Justice R. A. Blair dated August 29, 1997 ENDORSEMENT [1] The appellant sought to argue that the assessment made by the respondent was made against the wrong party, that is that the bankrupt was not the employer of those for whom deductions were to be made. This argument does not appear to have been raised before Blair J. and there is an inadequate factual record for this court to be able to deal with it. [2] Secondly, the appellant now concedes, we think, appropriately, that s. 224(1.2) of the Income Tax Act gives the respondent priority over the appellant's unsecured interests. Blair J. reached this conclusion for reasons with which we completely agree. [3] The third argument is that the respondent's failure to pursue its claim in the bankruptcy proceedings prevented it from proceeding with its assessment. For the reasons given by Blair J., this argument also fails. [4] The appeal must therefore be dismissed with costs.