Canada (National Revenue) v. Deschênes

Canada (National Revenue) v. Deschênes

Applicants failed to meet their initial burden to show the CRA did not make full and frank disclosure or that there were no reasonable grounds for a jeopardy collection order; the evidentiary record established transfers, encumbrances, concealment/double accounts, credibility and cooperation issues and other factors that justified the issuance of the order; Jarvis principles and s.8 Charter protections were not engaged in a way that invalidated the assessments or the order; accordingly the ex parte jeopardy collection order dated March 29, 2012 is upheld and the application dismissed.

Citation
2013 FC 87
Parties
Judgment Creditor: Her Majesty the Queen in right of Canada (Minister of National Revenue); Debtor Applicant: Réginald Deschênes; Debtor Applicant: Diane Brassard; Debtor Applicant: Serge Deschênes; Debtor Applicant: 9099-5374 Québec Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
29 January 2013
Procedural Posture
Application Under S.225.2(8) Income Tax Act to Review an Ex Parte Jeopardy Collection Order / Summary Review Judgment (reasons for Order and Order)
Outcome
Application dismissed; jeopardy collection order dated March 29, 2012 upheld; costs awarded to Her Majesty
Legal Topics
Jeopardy Collection Order, Ex Parte Full and Frank Disclosure, Section 160 Attribution, Tax Audit and Assessment, Charter S.8 Search and Seizure, Jarvis Audit/investigation Separation
Source Language
English
Tax Law Administrative Law Constitutional Law Civil Procedure Jeopardy Collection Order Ex Parte Full and Frank Disclosure Section 160 Attribution Tax Audit and Assessment +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 15 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Her Majesty the Queen in right of Canada (Minister of National Revenue)

Judgment Creditor

Réginald Deschênes

Debtor Applicant

Diane Brassard

Debtor Applicant

Serge Deschênes

Debtor Applicant

9099-5374 Québec Inc.

Debtor Applicant

Procedural Posture

Application Under S.225.2(8) Income Tax Act to Review an Ex Parte Jeopardy Collection Order / Summary Review Judgment (reasons for Order and Order)

Legal Issues

  1. 1 Whether the Crown made a full and frank disclosure in the ex parte application
  2. 2 Whether there were reasonable grounds to believe collection would be jeopardized to justify a jeopardy collection order under s.225.2(2) ITA
  3. 3 Whether the reassessments and audit procedures breached s.8 of the Charter or Jarvis principles

Ratio Decidendi

Applicants failed to meet their initial burden to show the CRA did not make full and frank disclosure or that there were no reasonable grounds for a jeopardy collection order; the evidentiary record established transfers, encumbrances, concealment/double accounts, credibility and cooperation issues and other factors that justified the issuance of the order; Jarvis principles and s.8 Charter protections were not engaged in a way that invalidated the assessments or the order; accordingly the ex parte jeopardy collection order dated March 29, 2012 is upheld and the application dismissed.

Court Disposition

Application dismissed; jeopardy collection order dated March 29, 2012 upheld; costs awarded to Her Majesty

Orders

  • The application to have the jeopardy collection order dated March 29, 2012 set aside is dismissed
  • Costs awarded to Her Majesty the Queen in right of Canada