Canada (National Revenue) v. Avard

Canada (National Revenue) v. Avard

On the balance of probabilities the November 8, 2003 clientele sale was not genuine and Avard retained effective control and beneficial ownership of A.R. Livre-Rapide; Rochon failed to rebut the Crown's prima facie evidence, so the IGOs issued in 2008 are converted to FGOs with costs.

Citation
2009 FC 315
Parties
Judgment Creditor: Canada (National Revenue); Judgment Debtor: Christian Avard; Third Party: Alain Rochon
Court
Federal Court
Jurisdiction
Canada
Judgment Date
25 March 2009
Procedural Posture
Income Tax Act / Motion to Convert Interim Garnishment Orders to Final Garnishment Orders
Outcome
IGOs issued in 2008 converted to FGOs; costs awarded to the Crown; Crown to provide draft FGOs within twenty days.
Legal Topics
Nominee Transactions, Sham Sale, Burden of Proof, Res Judicata, Conversion of Interim Garnishment to Final Garnishment
Source Language
English
Tax Civil Procedure Enforcement Garnishment Nominee Transactions Sham Sale Burden of Proof Res Judicata +1 more

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Parties

Canada (National Revenue)

Judgment Creditor

Christian Avard

Judgment Debtor

Alain Rochon

Third Party

Procedural Posture

Income Tax Act / Motion to Convert Interim Garnishment Orders to Final Garnishment Orders

Legal Issues

  1. 1 Was the November 8, 2003 sale a genuine transfer or a sham to conceal ownership?
  2. 2 Whether Alain Rochon was a nominee for Christian Avard.
  3. 3 Allocation and standard of proof required to convert IGOs to FGOs.

Ratio Decidendi

On the balance of probabilities the November 8, 2003 clientele sale was not genuine and Avard retained effective control and beneficial ownership of A.R. Livre-Rapide; Rochon failed to rebut the Crown's prima facie evidence, so the IGOs issued in 2008 are converted to FGOs with costs.

Court Disposition

IGOs issued in 2008 converted to FGOs; costs awarded to the Crown; Crown to provide draft FGOs within twenty days.

Orders

  • Convert the interim garnishment orders issued in 2008 to final garnishment orders.
  • Costs awarded to the Crown.