Bernier v. Canada (Attorney General)
The Court held that Fortin did not establish that the appellant's investment was not a tax shelter, the Tax Court judge did not err in finding the investment was a tax shelter under s.237.1(1), and the penalty under s.162(9) was properly upheld; the appeal is dismissed with costs.
Source-derived case information.
- Citation
- 2004 FCA 236
- Parties
- Appellant: Jean-Luc Bernier; Respondent: Attorney General of Canada
- Court
- Federal Court of Appeal
- Jurisdiction
- Canada
- Judgment Date
- 16 June 2004
- Procedural Posture
- Appeal Tax Penalty Under the Income Tax Act / Judgment Delivered From the Bench on Appeal From the Tax Court of Canada
- Outcome
- Appeal dismissed with costs.
- Legal Topics
- Tax Shelter, Income Tax Act S.237.1(1), Penalty S.162(9)
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Jean-Luc Bernier
Appellant
Attorney General of Canada
Respondent
Procedural Posture
Appeal Tax Penalty Under the Income Tax Act / Judgment Delivered From the Bench on Appeal From the Tax Court of Canada
Legal Issues
- 1 Whether the investment constituted a tax shelter within s.237.1(1) of the Income Tax Act
- 2 Whether the penalty under s.162(9) of the Income Tax Act was properly applied
- 3 Whether Fortin v. Quebec precluded a finding that the investment was a tax shelter
Ratio Decidendi
The Court held that Fortin did not establish that the appellant's investment was not a tax shelter, the Tax Court judge did not err in finding the investment was a tax shelter under s.237.1(1), and the penalty under s.162(9) was properly upheld; the appeal is dismissed with costs.
Court Disposition
Appeal dismissed with costs.
Orders
- Appeal dismissed with costs.
- Penalty under s.162(9) of the Income Tax Act upheld.
Full Case Text
Judgment text and source record
1 paragraphs
Bernier v. Canada (Attorney General) Court (s) Database Federal Court of Appeal Decisions Date 2004-06-16 Neutral citation 2004 FCA 236 File numbers A-440-03 Decision Content Date: 20040616 Docket: A-440-03 Citation: 2004 FCA 236 CORAM: RICHARD C.J. DÉCARY J.A. NOËL J.A. BETWEEN: JEAN-LUC BERNIER Appellant and ATTORNEY GENERAL OF CANADA Respondent Hearing held at Montréal, Quebec, on June 16, 2004. Judgment delivered from the bench at Montréal, Quebec, on June 16, 2004. REASONS FOR JUDGMENT OF THE COURT: NOËL J.A. Date: 20040616 Docket: A-440-03 Citation: 2004 FCA 236 CORAM: RICHARD C.J. DÉCARY J.A. NOËL J.A. BETWEEN: JEAN-LUC BERNIER Appellant and ATTORNEY GENERAL OF CANADA Respondent REASONS FOR JUDGMENT OF THE COURT (Delivered from the bench at Montréal, Quebec, on June 16, 2004) NOËL J.A. [1] Fortin v. Québec (sous-ministre du revenu) (LQ) [1999] R.D.F.Q. 175, on which the appellant relies, does not in any way establish that the investment that he sold to his clients was not a "tax shelter" within the meaning of subsection 237.1(1) of the Income Tax Act. That decision does establish, however, that the investor in question in that matter had been manipulated and that his investment did not even give rise to a reasonable expectation of profit. [2] In our opinion, the Tax Court of Canada judge did not err in determining that the investment that the appellant proposed to his clients was a tax shelter. It is also our view that she did not err in upholding the penalty provided under subsection 162(9) of the Act, either. [3] The appeal shall be dismissed with costs. "Marc Noël" J.A. Certified true translation Kelley A. Harvey, BA, BCL, LLB FEDERAL COURT OF APPEAL SOLICITORS OF RECORD DOCKET: A-440-03 STYLE OF CAUSE: JEAN-LUC BERNIER Appellant and ATTORNEY GENERAL OF CANADA Respondent PLACE OF HEARING: Montréal, Quebec DATE OF HEARING: June 16, 2004 REASONS FOR JUDGMENT OF THE : (RICHARD C.J., DÉCARY, NOËL JJ.A.) DELIVERED FROM THE BENCH BY: NOËL J.A. APPEARANCES: Jean-Luc Bernier (representing himself) FOR THE APPELLANT Anne-Marie Boutin FOR THE RESPONDENT SOLICITORS OF RECORD: Jean-Luc Bernier Brossard, Quebec FOR THE APPELLANT Morris Rosenberg Deputy Attorney General of Canada Montréal, Quebec FOR THE RESPONDENT