Canada (National Revenue) v. Ruh

Canada (National Revenue) v. Ruh

The final garnishment order was an enforcement measure of the s.223(3) ITA certificate and, by relying on article 639 CCP, the garnishment remains effective and binding until the condition (the debtor's surrender of the insurance contracts) is fulfilled; the fulfilment of that condition is not subject to a time limitation such that the Crown's rights under the garnishment are not out of time, so the motion is dismissed.

Citation
2017 FC 272
Parties
Judgment Creditor / Respondent: Her Majesty the Queen in right of Canada; Defendant / Moving Party: Brigitte Ruh; Garnishee / Third Party: Sun Life of Canada
Court
Federal Court
Jurisdiction
Canada
Judgment Date
13 March 2017
Procedural Posture
Tax Enforcement — Garnishment Under Income Tax Act / Motion Under Rule 359 to Declare Rights Out of Time (motion Hearing)
Outcome
Motion dismissed.
Legal Topics
Garnishment, Surrender Value of Life Insurance, Certificate Under S.223(3) ITA, Article 639 CCP, Limitation Periods for Judgments, Final Garnishment Order
Source Language
English
Tax Civil Procedure Enforcement Insurance Law Limitation Periods Garnishment Surrender Value of Life Insurance Certificate Under S.223(3) ITA +3 more

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Parties

Her Majesty the Queen in right of Canada

Judgment Creditor / Respondent

Brigitte Ruh

Defendant / Moving Party

Sun Life of Canada

Garnishee / Third Party

Procedural Posture

Tax Enforcement — Garnishment Under Income Tax Act / Motion Under Rule 359 to Declare Rights Out of Time (motion Hearing)

Legal Issues

  1. 1 Whether rights conferred by the final garnishment order of February 21, 1995 are time‑barred
  2. 2 Whether the right to surrender insurance contracts was exercised
  3. 3 Whether limitation periods apply to the fulfilment of conditions set by a garnishment order

Ratio Decidendi

The final garnishment order was an enforcement measure of the s.223(3) ITA certificate and, by relying on article 639 CCP, the garnishment remains effective and binding until the condition (the debtor's surrender of the insurance contracts) is fulfilled; the fulfilment of that condition is not subject to a time limitation such that the Crown's rights under the garnishment are not out of time, so the motion is dismissed.

Court Disposition

Motion dismissed.

Orders

  • Motion to declare rights arising from the final garnishment order (February 21, 1995), interim garnishment order (December 19, 1994) and certificate (September 27, 1994) out of time and to release debtor from garnishment is dismissed
  • Costs of $2,500 awarded to the judgment creditor, Her Majesty the Queen in right of Canada